Knesset-Owned Company KESAA Plans Average Employee Bonus of 22,500 Shekels Amid Government Scrutiny

KESAA, the Israeli government-owned company managing crude oil and refined product pipelines between Eilat and Ashkelon, announced a bonus plan for its employees based on last year's profits. The company informed its board that 430 employees will share a total bonus pool of 9.11 million shekels, averaging approximately 22,500 shekels per employee. The exact distribution will be determined by the board and approved by the Government Companies Authority. The bonus cost will not exceed 10% of the company’s net annual profit and will be distributed differentially. However, senior management will not receive bonuses immediately due to recent government criticism of the company’s operations.

KESAA operates critical infrastructure including facilities at the ports of Eilat and Ashkelon connected by underground pipelines. Since the outbreak of the recent conflict, the company’s global activity has contracted, though it faces new projects to expand storage capacity. Environmental challenges persist, as the Ministry of Environmental Protection has opposed expanding operations in Eilat and previously limited annual activity there. In May 2024, an interministerial team recognized benefits in increasing oil transport through Eilat, and following the "Sword of Iron" war, the ministry approved exceeding previously set annual limits.

The bonus plan reflects ongoing tensions between the company’s politically connected employee union and government oversight. While employees are set to receive bonuses, management must wait amid scrutiny. This development comes as KESAA navigates geopolitical and environmental challenges while preparing for future infrastructure expansions.