Ex-Leumi Executive to Lead Naoy Group for Higher Pay Than Former Bank CEO

Tzachi Artzi, a senior executive departing from Bank Leumi, is set to become the CEO of the non-banking credit company Naoy Group. His compensation package is expected to exceed that of Hanan Friedman, the former CEO of Bank Leumi. Naoy Group's shareholder meeting is being called to approve Artzi's annual salary, which amounts to NIS 4.6 million, including a one-time bonus of NIS 600,000. This figure is higher than Friedman's reported NIS 4.4 million salary last year.

The disparity in compensation is attributed to Israel's senior executive pay law, which caps the salaries of bankers and CEOs in financial institutions. Artzi is slated to begin his role on July 4, 2027, and can resign with three months' notice. Naoy Group can terminate his employment with six months' notice, or pay him his full salary for that period.

Artzi brings approximately 25 years of experience in banking, credit, and finance to Naoy Group. Previously at Bank Leumi, he chaired credit committees and was a member of the bank's supreme credit committee. Dori Naoy, who holds about 70% of the company's shares, will serve as deputy chairman, working approximately 66% of a full-time position. He will focus on relationships with the banking system and capital markets, risk management, and supporting the incoming CEO.

Dori Naoy's compensation has been adjusted to management fees of NIS 1.3 million, plus car expenses valued at NIS 500,000, and a maximum expense reimbursement of NIS 250,000. Naoy Group is a public company with a market capitalization of NIS 1.6 billion, while Bank Leumi's market cap is NIS 116 billion.