Adi Tzim Blocks Jakobi Brothers’ Pay Raise at YSB Group Amid Performance Concerns
The Jakobi brothers, controlling shareholders of YSB Group, have been seeking to increase their compensation, but Adi Tzim, a significant shareholder, continues to oppose the move, leaving the brothers without salary for now. In February, Tzim led a shareholder meeting to reject the proposed pay raise. The company, which specializes in project execution, system maintenance, and building operations, attempted to bring the proposal back for a vote in July but postponed it twice, most recently last week, citing exhaustive discussions with shareholders aimed at overcoming Tzim’s opposition.
Adi Tzim, who holds 16.5% of YSB shares and is not part of the Jakobi family, is a key figure in the vote since approval requires the support of a majority of non-family shareholders. The Jakobi brothers, Pini (38.6%) and Amir (25.8%), currently serve as chairman and CEO, respectively. Their last approved compensation terms expired in November 2022, and their current request seeks to raise Pini’s annual pay from 2.95 million shekels to 4.1 million, and Amir’s from 2 million to 3 million shekels. The proposed increase mainly involves adding annual bonuses tied to the company’s profits, capped at 1.1 million shekels for Pini and 950,000 for Amir. However, given the company’s recent financial performance, these bonuses may be negligible.
YSB has faced financial challenges, with 2025 marking its third consecutive loss year and fourth in five years, excluding a one-time gain in 2022. Despite a 29% revenue increase to 407 million shekels in 2025, administrative and general expenses of 42.4 million shekels exceeded gross profit, a pattern consistent in most recent years. This financial strain complicates achieving net profitability.
Additionally, YSB’s stock performance has been weak since its December 2017 IPO, with its market value dropping 65% to 154 million shekels, while the TA-125 index rose 203%. Although the stock gained 20% in the past year, it still underperformed the index’s 35% rise. The upcoming shareholder meeting will also address the salary of Pini’s son, Tomer Jakobi, a division manager at a subsidiary, proposing an annual salary of 972,000 shekels and a 54,000 shekel advance on a performance-based bonus, payable regardless of actual performance, contradicting its definition.
