El Al Chairman Seeks $7 Million Annual Compensation Package

El Al is seeking shareholder approval for a revised employment agreement for its Chairman of the Board, Amiqam Ben Zvi, which would increase his annual compensation package to approximately 7.03 million shekels. The proposal, to be voted on at a November 26th meeting, includes raising Ben Zvi's position from 90% to a full-time role with a gross monthly salary of 157,000 shekels, indexed to inflation. This package also incorporates bonuses and stock-based compensation, with the total annual cost estimated at 2.63 million shekels for salary and benefits, 1.97 million shekels for bonuses, and 2.43 million shekels for stock awards. The airline attributes the expanded role to Ben Zvi's increased responsibilities, including his chairmanship of El Al Travel, a subsidiary focused on tourism services.

This proposed increase follows a compensation update approved in December 2025, which set his monthly salary at 141,000 shekels plus stock options. The current offer represents an approximate 11.3% rise in monthly salary, aligning with the increase in his employment scope. El Al's 2025 annual reports indicated Ben Zvi's compensation was approximately 5.95 million shekels, though this figure reflects recognized expenses rather than the projected cost of the new terms.

Shareholders will also vote on granting Ben Zvi three years of exemption from liability and indemnification, effective October 30, 2025, recognizing him as part of the controlling group. The Rosenberg family's group holds about 42.25% of El Al shares, and institutional investors' votes could be crucial for approving certain agenda items requiring a special majority.

Additionally, the agenda includes requests for similar liability exemptions and indemnification for CEO Levy Hallevi and Deputy Chairmen Kenneth Neil Rosenberg and Darel Hagler. The company also proposes appointing Shalom Naaman, a co-founder of the Mahsaney Hashuk chain, as an external director.

The meeting occurs as El Al's stock has gained attention, rising significantly in late September following a reported attempted hijacking of a Flydubai flight. This incident, which led to the plane being diverted to Saudi Arabia, raised concerns among Israeli travelers using foreign airlines via Gulf states, potentially boosting demand for Israeli carriers. The stock's performance helped El Al meet the criteria for inclusion in the TA-35 index, effective November 5th, though it will also be removed from the TA-90 index. The airline is also facing the gradual return of foreign airlines like British Airways, Delta, and United to Israel, which could intensify competition and pressure ticket prices and local carriers' profitability.