Bank of Israel Plans Limits on Senior Bank Executives’ Variable Pay After Leumi CEO Option Program
How 1 Israeli newsrooms covered this story — translated into English and compared side by side.
First reported by Calcalist · 1 day ago
What happened
The Bank of Israel is set to impose new limits on senior bank executives’ variable pay after Bank Leumi CEO Hanan Friedman received stock options tied to a subsidiary’s performance. The draft directive aims to prevent bonuses linked to specific projects, ensuring incentives reflect overall responsibilities to avoid risky decisions. The final rule may apply retroactively and follows concerns about incentive structures encouraging short-term risk-taking.
- 01Bank of Israel drafts rules limiting variable pay linked to single projects for senior bank executives.
- 02Hanan Friedman, Bank Leumi CEO, received 854,700 stock options tied to Leumi Partners’ value increase.
- 03Options granted under a Net Exercise mechanism offset by reduced fixed salary, complying with pay cap laws.
- 04Regulators fear targeted bonuses could distort managerial focus and encourage risky short-term decisions.
- 05Final directive expected soon, possibly retroactive, after public consultation.
- 06Leumi Partners has executed nearly 4 billion shekels in deals since November under new CEO Victor Wekert.
Summary translated & synthesized from the sources below by baba. Read each original for the full report.
Full coverage · 1 outlets
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