Freishkovsky Family Members Secure New Contracts and Salary Increases

The shareholders of Freishkovsky, a real estate company, have approved new three-year employment contracts for key executives, including controlling shareholders Yossi and Sharon Freishkovsky. Yossi serves as Chairman of the Board, and Sharon is the CEO. The updated compensation policy also covers other family members active in the company: Haim Kardi, the family's son-in-law and CEO of Freishkovsky Investments; Susi Freishkovsky, Sharon's wife and VP of Marketing; and Edna Freishkovsky, mother of Yossi and Sharon and Chief Designer.

Under the new agreements, Yossi and Sharon Freishkovsky will each receive a gross monthly salary of NIS 162,000, indexed to the July 2026 consumer price index. This represents an increase from their current NIS 150,000 monthly salary, indexed to July 2023. Their salaries will be adjusted quarterly based solely on the index. Annually, their base gross salary will amount to approximately NIS 1.944 million each.

In addition to their base salaries, each executive is entitled to a net monthly allowance of NIS 8,000 for business and car expenses, totaling about NIS 96,000 net annually per person. This also includes full social security contributions, a company mobile phone with full tax coverage, and an increased annual leave entitlement of 36 days.

The compensation package also features an annual bonus mechanism tied to the company's total annual profit before tax, excluding unrealized gains from investment properties, except for rental housing. The bonus is contingent on the annual profit exceeding NIS 65 million. If profits are between NIS 65 million and NIS 110 million, a bonus of 2% of the excess profit will be paid. Above NIS 110 million in profit, the bonus rate increases to 3% of the remaining profit. The maximum annual bonus for each executive is capped at NIS 1.5 million. Consequently, the maximum annual cash cost for base salary and maximum bonus for each controlling shareholder could reach approximately NIS 3.444 million, excluding fringe benefits and net expense reimbursements.