The Ministry of Justice objects to the proposal to cap the executive salary cost deductible.
Minister of Finance Yair Lapid's announcement that the Ministry of Finance plans to cap expenses recognized for tax purposes relating to executive salaries at financial institutions and bodies that manage the public's money at NIS 3.5 million a year and to amend the salary approval mechanism in the Companies Law have rippled through the economy. In addition to public support for any measure that will narrow salary differentials and restrict exorbitant executive salaries, there have been the expected objections by the financial executives and their supporters.
However, it turns out the affected parties are not alone in objecting to the proposal. A top ministry of official told "Globes" that the Ministry of Finance's proposal will not pass if it requires amending the Companies Law. He says that the law has already undergone far-reaching changes, including Amendment 20, which also tackles exorbitant executive salaries, and that any new amendment will further complicate the law, because of a basic lack of understanding of it.
Published by Globes [online], Israel business news - www.globes-online.com - on April 7, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014