Naoy Group Appoints New CEO from Bank Leumi Amid Leadership Shakeup

Naoy Group, a non-bank credit company controlled by Dori Naoy, has announced significant changes in its senior management. Tzahi Artzi, head of construction and real estate at Bank Leumi's business division, is slated to become the new CEO, replacing Dori Naoy, who will transition to the role of active Vice Chairman of the Board. Concurrently, Etti Ben-Nono, deputy CEO and manager of finance and investments at Clal Insurance Credit, will be appointed CFO. These appointments are subject to shareholder approval, and Artzi's appointment also requires a non-objection notice from the Capital Markets, Insurance and Savings Authority. Naoy Group's stock has seen an 8% increase this month and has doubled in value over the past three years, with the company's market capitalization currently at NIS 1.6 billion.

Artzi, who brings approximately 25 years of experience in banking, credit, and finance, currently chairs credit committees and serves on Bank Leumi's supreme credit committee. He is expected to assume his new role by July 4, 2027, following a transition period. His annual compensation will reportedly match that of the outgoing CEO, excluding an unspecified one-time signing bonus. Dori Naoy, who holds about 70% of the company's shares, will serve as Vice Chairman in a roughly two-thirds full-time capacity. He will continue to manage relationships with the banking and capital markets, oversee risk management, and mentor the incoming CEO. His annual compensation will be reduced by approximately 70%, including the cancellation of a variable component that had a cap of NIS 2 million.

Chairman Shahar Oshri will continue as an active Chairman for ten years, receiving restricted stock units (RSUs) totaling approximately 2.4% of the company's diluted share capital, vesting over seven years. Vesting is contingent on the company meeting annual net profit targets across three tiers. Ben-Nono, with about 20 years of financial management experience, will start on December 1, 2026, replacing Aviv Ephraim, who has been CFO for 15 years. The board will also see a change, with Ilan Cohen appointed as an external director, replacing Gidi Altman. Cohen previously spent 32 years at Bank Leumi, including 15 years in senior management roles.

Naoy Group manages a credit portfolio of approximately NIS 5.4 billion as of late June 2026, up from NIS 2.5 billion five years prior, with equity totaling around NIS 1.1 billion. The company reported a net profit of NIS 91.5 million for the first half of the year, compared to NIS 48.6 million in the same period of 2021, with a return on equity of approximately 18%. Dori Naoy stated that the management changes are part of a two-year plan to accelerate growth and elevate the company, highlighting Artzi's deep understanding of Israel's business sector.