Ex-Politicians' Stock Market Performance Mostly Negative, Except Shaked

A trend of former senior politicians joining publicly traded companies on the Tel Aviv Stock Exchange has largely resulted in significant losses for shareholders, according to a Globes report. Companies seek to leverage these individuals' connections, regulatory knowledge, and ability to open doors. However, the market performance of these appointments has frequently been disappointing.

The most severe example is the non-bank credit company Yont Credit, which lost approximately 88% of its value during the tenure of former Finance Minister Moshe Kahlon as chairman. Former President Reuven (Ruvi) Rivlin served as chairman of Electreon for four years, during which the stock dropped about 66%. The Mishmaret chain saw a 49% decline since former Minister Yifat Shasha-Biton became chairwoman. Intercure, a cannabis company, lost about 33% of its stock value over six years with former Prime Minister Ehud Barak as chairman.

Further examples include Madarin, which fell 13% in the last five months under the leadership of Moshe Arbel. Gadi Eisenkot headed Storage Drop before entering the Knesset, and the company lost about 95% of its value during his leadership. Experts attribute these failures to the fact that political experience does not necessarily translate to business management skills, and government connections cannot substitute for a profitable business model.

In contrast, former Justice and Interior Minister Ayelet Shaked stands out as a notable exception.

Industry sources attribute Shaked's success to her professional alignment with the company's core business. Her previous public roles provided her with deep familiarity in planning and construction, housing development, land enhancement, and direct engagement with the Israel Land Authority, all central to a development real estate company's operations. The data suggests that while the transition from politics to the business sector has failed in most cases, a strong professional fit between a politician's public experience and a company's activities can yield positive results.