IDB Development Corporation, controlled by Eduardo Elsztain, has clashed head on with Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) CEO Izzy Cohen and opposes approving his salary at today's shareholders meeting, citing "a flawed management style and unflattering results," sources inform "Globes." IDB Development, led by CEO Sholem Lapidot, sent a letter to senior figures in the capital market (who supervise Clal Insurance) and Moshe Terry, the trustee for the controlling shares on behalf of the Israel Securities Authority, expressing opposition to extending Cohen's term as CEO and approving his salary at the meeting today.
However, IDB is not expected to make an issue out of it, especially as control of Clal insurance is in the hands of the trustee Terry, who as far as is known, opposes IDB's position on the matter and supports approving Cohen's salary. IDB only has a relatively minor stake in Clal Insurance, which is not defined as a controlling interest for the purpose of a vote.
A market source described IDB's opposition to Cohen as "unprecedented" and said, "There is a vote of no confidence by the owners in the CEO of a company it controls. Even if there is a trustee, we are still talking about a measure which shows how wretched the relations are between them."
Cohen was appointed Clal Insurance CEO in 2012 for a term of five years having previously served as CEO of Africa-Israel Investments Ltd. (TASE:AFIL) and before that Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL). Three months ago, he told Clal Insurance chairman Dani Naveh that he was prepared to extend his term to October 2019, with an option for a year after that. His basic annual salary, if he stays, will rise to NIS 2.5 million and a total of NIS 2.82 million with benefits and perks.
Published by Globes [online], Israel business news - www.globes-online.com - on October 23, 2017
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