GCity Reverses Golden Parachute for CEO Amid Investor Opposition

Real estate firm GCity, controlled by businessman Haim Katsman, has decided to withdraw its "golden parachute" offer for incoming CEO Keren Khalifa. This decision comes a month after the initial proposal caused significant market stir and in response to strong opposition from the company's institutional investors.

The company's board has postponed the approval of Khalifa's employment terms, citing a need to "exhaust dialogue with institutional bodies." This move follows a previous board decision to accelerate Khalifa's start date to October from February of the following year, and to approve new employment terms. This acceleration was seen as a factor in the collapse of a major deal to sell control of GCity to businessman Tzachi Abu.

Under the initially proposed terms, Khalifa was set to receive an annual compensation package valued at approximately NIS 4.4 million. This included a base salary of NIS 2.3 million, an annual bonus potentially reaching NIS 1.3 million, and equity compensation worth NIS 855,000. Notably, the plan included an exceptional severance package: if her employment was terminated within a year of a change in control, she would be entitled to 200% of her annual base salary, totaling NIS 4.6 million.

GCity's decision to backtrack on the golden parachute indicates a significant concession to its institutional investors, who apparently viewed the terms as excessive. The company aims to resolve these disagreements before proceeding with key leadership and ownership changes.