El Al Chairman Set for $2 Million Annual Compensation Package
Translated & summarized from Ynet by baba
El Al's Chairman Amikam Ben-Zvi is set to receive an annual compensation package of approximately NIS 7 million, including salary, bonuses, and stock, as the airline's stock has risen significantly. The company is seeking shareholder approval for these changes at its annual general meeting. El Al's stock performance has been strong, driven by improved competitive conditions and security perceptions, making controlling shareholder Kenny Rosenberg's investment highly profitable.
The story in 5 lines · by baba
- El Al Chairman Amikam Ben-Zvi is set for an annual compensation package of approximately NIS 7 million.
- El Al's stock has surged 43.3% in three months, valuing the company at NIS 11.3 billion.
- Shareholders will vote on Ben-Zvi's compensation and a liability exemption for him and the CEO.
- Shalom Naaman, co-founder of Mashbir La'Olam, is proposed as a new external director.
- El Al's stock has risen 660% in three years, significantly benefiting controlling shareholder Kenny Rosenberg.
El Al's stock has surged 43.3% in the last three months, positioning the airline for inclusion in the prestigious Tel Aviv 35 index with a valuation of NIS 11.3 billion. Amidst this success, Chairman Amikam Ben-Zvi is slated to receive an annual compensation package of approximately NIS 7 million, alongside an increase in his role from 90% to 100% employment.
Ben-Zvi will now earn a monthly salary of NIS 157,000. His total annual salary and associated expenses will amount to NIS 2.63 million, with a bonus component of NIS 1.97 million annually. This will be supplemented by stock-based compensation valued at NIS 2.43 million.
El Al published a notice for its annual general meeting on Sunday, seeking approval for these compensation increases for Ben-Zvi, who is a close associate of controlling shareholder Kenny Rosenberg and reportedly assisted him in acquiring the airline. The meeting will also vote on a three-year exemption from liability and indemnification for Ben-Zvi and CEO Levi Halevi, whose salary will not be increased.
Additionally, the airline proposes appointing Shalom Naaman, a co-founder of the 72-branch Mashbir La'Olam retail chain and its co-CEO with his brother Shaul Naaman, as a new external director. This would be Naaman's first board position at a public company. Naaman and Ben-Zvi have a prior connection from the retail sector.
El Al's stock is currently at a high, benefiting from improved competitive conditions due to ongoing security concerns and the reduced presence of foreign airlines in Israel. An attempted attack on Flydubai flights has reinforced the perceived advantage of El Al's security systems for Israeli travelers. The airline's stock has risen approximately 660% over the past three years, making Rosenberg's acquisition of the company highly profitable. Rosenberg invested NIS 360 million in the initial takeover and an additional NIS 40 million in 2023. His current 43% stake in El Al is valued at approximately NIS 4.5 billion.
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