Israeli Bank Executives Earn More After Leaving for Private Sector

A 2016 law capping executive salaries in Israeli banks and insurance companies at 35 times the lowest salary paid within the institution has led to a significant trend: senior bank officials are leaving for higher-paying roles in the private sector, often earning more than their former CEOs. This phenomenon is particularly evident with Itamar Forman, former head of the business division at Bank Hapoalim, who moved to lead Isracard and is expected to earn approximately NIS 5.6 million annually, exceeding the NIS 4.3 million salary of Bank Hapoalim's CEO. Similarly, Tzachi Artzi, formerly head of construction and real estate at Bank Leumi, now heads a non-bank credit company with an annual package of NIS 4.6 million, surpassing Bank Leumi's CEO salary of NIS 4.4 million. The most striking example is Uri Levin, who transitioned from CEO of Discount Bank, earning NIS 3 million in his final year, to CEO of real estate group Tidhar, where he is projected to earn around NIS 18 million in 2025.

Other notable departures include Eyal Ben Haim from Bank Leumi to Isracard and Zoharit Yogev from Bank Leumi to Cal. Former CEOs are also moving to private equity and venture capital firms, such as Lilach Asher-Topilsky to FIMI Fund and Rakefet Russak-Aminoach to Team8. These moves occur during a period of record profits for Israeli banks, with the five largest banks earning approximately NIS 32 billion in 2025 and an additional NIS 16 billion in the first half of 2026, while the salary cap remains in place.

The salary cap compresses the pay structure below the CEO level, causing department heads managing substantial credit portfolios to earn less than their CEOs and significantly less than the market is willing to pay. Competitors in the non-bank credit, credit card, and large real estate sectors are actively recruiting these executives, valuing their knowledge of customers, risks, and regulations. This exodus results in a loss of critical knowledge and experience for the banks, particularly in business credit, real estate, and mortgage sectors, where non-bank competitors are increasing their market share. As bank profits continue to soar and the salary cap persists, the gap between what banks can offer and market rates will widen, likely increasing the number of senior executives seeking opportunities elsewhere.