Food manufacturer Strauss Group Ltd. (TASE:STRS) is seeking to reward CEO Gadi Lesin by allocating him NIS 16.9 million in share-based remuneration.
At the end of last week, the company published a summons to a shareholders meeting, at which the shareholders will be asked to approve Lesin's remuneration. The remuneration includes an allocation of 525,000 options and 165,000 vested shares. Assuming that all the options are exercised, the remuneration will amount to 0.49% of the company's capital.
The exercise price for the options is NIS 63.10, 2% higher than the market price. The options will mature in four packets: half in July 2018 and 16.7% more in each succeeding year.
The blocked shares will mature in four packets, providing that Lesin is still employed at Strauss and achieves at least 90% of the sales budget to be determined.
Strauss estimates the fair value of the options on the approval date for the allocation at NIS 12.87 per option, and the fair value of the vested shares at NIS 61.50 per share. The total fair value amounts to NIS 3.4 million per year, leading to an annual salary increase of NIS 7.3 million for Lesin (his maximum annual remuneration is NIS 8.4 million).
In addition, the shareholders meeting will be asked to extend the term of controlling shareholder Ofra Strauss as chairperson, and to increase her gross monthly salary from NIS 150,000 to NIS 175,000. Her total salary cost will amount to NIS 4.6 million a year, with a maximum of NIS 5.3 million.
Published by Globes [online], Israel business news - www.globes-online.com - on August 21, 2016
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