Monday Clarifies CEO Pay Raise Unrelated to Recent Layoffs Amid Criticism
Ahead of a special investor meeting on Monday evening to approve a salary increase for co-CEOs Roy Man and Eran Zinman, Monday addressed its Israeli employees to clarify the timing and rationale behind the pay raise amid public criticism. The company emphasized that the salary adjustment is unrelated to the recent layoffs of 620 employees about two weeks ago. According to an internal email, the organizational restructuring that led to the layoffs was aimed at aligning the company with its new product and business focus and began approximately six months ago, well before the decision to update executive compensation.
The co-CEOs are requesting approval to gradually increase their total compensation packages from $7.3 million currently to $14.6 million by 2029. The base salary would rise from 93,000 shekels per month to 120,000 shekels per month, with equity-based compensation capped at $13.65 million by 2029. Since the company’s IPO five years ago, their pay has remained fixed despite revenue growth from about $300 million to over $1 billion annually. Initially, they imposed a 3% annual salary cap and fixed stock grants of around $7 million per year, which Monday describes as unusual in the market.
The company states that their current pay is in the 25th percentile of market standards and seeks to raise it to the 50th percentile. The proposed update is the first since the Nasdaq IPO and requires shareholder approval at the annual August meeting. The compensation committee and board conducted an objective benchmarking process, concluding the current pay was below market norms. Most of the compensation is equity-based and contingent on company performance, with the stated figures representing maximum caps rather than guaranteed amounts. Actual pay depends on meeting targets and board decisions.
Monday’s communication underscores its commitment to a competitive and consistent compensation policy aligned with market practices across all organizational levels. The company also reiterated its focus on long-term success and performance-based rewards.
