An era is coming to an end at Israel Corporation (TASE: ILCO): Nir Gilad, chairman of subsidiary Israel Chemicals (TASE: ICL: NYSE: ICL) since January 2008, is stepping down. Until 2015, Gilad was also CEO of Israel Corporation.
Sources close to Israel Chemicals confirmed that after a decade of varied and challenging activity, a series of talks had been held with Gilad on an orderly transfer of his job which will take place over the next few months and will be completed by the end of the year.
In recent years, without wanting to and not to his benefit, Gilad has become fixed in the public mind as a symbol of the huge compensation paid to senior executives in the private sector, and his salary cost has attracted fierce criticism. In 2014, he earned NIS 43 million, which included a bonus of NIS 31 million from Israel Corporation controlling shareholder Idan Ofer for his role in the split of the company's holdings into two. In his seven years as Israel Corporation CEO, Gilad's salary cost totaled a huge NIS 143 million.
In this context, the "salary hi-jack" at the end of 2012 is one memorable event among several. A day before amendment 20 to the Companies Law on executive pay came into force, Israel Corporation approved a NIS 240 million options plan for its senior managers, of which NIS 25 million went to Gilad.
Israel Corporation shareholders had less to celebrate during Gilad's term. From the time of his appointment as Israel Corporation CEO in June 2007 until he left the post at the beginning of this year, Israel Corporation's share price fell 35%, while the Tel Aviv 25 Index rose 30%.
Published by Globes [online], Israel business news - www.globes-online.com - on March 6, 2016
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