Bank Leumi (TASE: LUMI) yesterday announced it was planning to pay Dr. Hedva Ber, who is leaving her position as risk management department head to become the Supervisor of Banks at the Bank of Israel, a NIS 347,000 golden handshake - in cash - as part of the bonus she is entitled to for Bank Leumi's performance in 2013.
As part of Bank Leumi's remuneration policy, senior executives were awarded bonuses for the bank's 2013 results. Half of the bonus was paid in cash, and half in the form of three-year convertible options. Since some of the options received by Ber and converted into shares are blocked, and cannot be sold until 2016, Bank Leumi decided to convert them into NIS 347,000 in cash. The bank noted that this figure reflected 21% discounting, among other things because payment of the bonus was being brought forward.
Bank Leumi decided on this course of action of action in order to enable Ber to take up her position as Supervisor of Banks without encountering a conflict of interest. "In order to prevent concern about a conflict of interest, Dr. Ber is not entitled to continue holding shares in Bank Leumi and/or to continue being eligible for payments from the bank dependent on the bank's results for 2015-2016," Bank Leumi said in its announcement.
Dr. Ber announced that she was waiving the relative remuneration to which she was entitled for the Bank Leumi's performance in 2015.
Published by Globes [online], Israel business news - www.globes-online.com - on July 8, 2015
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