Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) CEO Avraham Gabbay unexpectedly resigned today, after five years in the job. He will stay on for six months, after which he will leave in favor of new challenges.
Gabbay is completing a term which was unquestionably one of Bezeq's best periods. During his term, Bezeq achieved one of the highest profit margins in the Israeli and global telecommunications industry. His departure creates strong competition, as the CEOs of all of Bezeq's subsidiaries want promotion after serving several years in their current positions.
The challengers for Bezeq CEO are Bezeq International Ltd. CEO Itzik Benbenisti; Bezeq deputy CEO Ran Guron; DBS Satellite Services (1998) Ltd. (Yes) CEO Ron Eilon, who previously served as deputy CEO of Bezeq; and outgoing HOT Telecommunication Systems Ltd. chairwoman Stella Handler. Gabbay's departure will presumably result in management changes throughout the company.
During his term as Bezeq CEO, Gabbay earned tens of millions of shekels. According to the company's financial statements, his salary cost in 2008-11 (the financial report for 2012 will be published in late March) was NIS 34.5 million, including NIS 9.33 million in salary, NIS 9.5 million in bonuses, and NIS 15.34 million in options. His salary cost for 2012 will presumably be at least NIS 5 million, boosting his salary for his term as CEO to over NIS 40 million in five years.
"After 14 years at Bezeq, and almost six years as CEO, I feel that this is the time for me to make a change," said Gabbay. "The hardest part of my decision was thinking about leaving Bezeq's outstanding and committed employees. Together, we did great things for the good of the shareholders, customers, and employees. These have been wonderful years, full of activity and real achievement. Today's Bezeq is a strong company with an excellent infrastructure, highly esteemed by its customers, winning management, an outstanding corporate culture, and workers who are a genuine source of pride."
Bezeq chairman Shaul Elovitch said, "Avi is without question an executive with rare managerial skills. Avi managed Bezeq during an unprecedentedly difficult and challenging period, and led the company to operating and financial performance without parallel among Israeli and foreign telecommunications companies. Avi leaves behind him a company in great shape, a company that invests in its future for its customers on the basis of a concept of long-term leadership."
Published by Globes [online], Israel business news - www.globes-online.com - on January 20, 2013
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