Bank Leumile-Israel BM CEO Rakefet Russak-Aminoach and Chairman David Brodetwill each have their annual salaries cut to 2.5 million shekels in 2017, Globes reported Sept. 26, citing the bank's updatedpay plan.
The move comes as the lender prepares for the implementationof a new compensationlaw, which limitsexecutive salaries at financial institutions to 35x that of the lowest salaryin the company, the paper noted. The law, approved by the Israeli parliament inMarch, caps compensation at 2.5 million shekels, subjecting any amount higherthan that to higher taxes. Daniel Tsiddon resigned as deputy CEO of the bank inthe wake of the law.
Under Bank Leumi'snew pay plan, both the chairman and CEO will not be entitled to bonuses, withthe 2.5 million shekels compensation to be paid as fixed salary.
The lender alsonoted that relevant employees will be entitled to bonuses of up to sevenmonthly salaries, subject to the bank reaching its desired capital ratios andweighted ROE levels, among other factors, Globes added.
As of Sept. 26, US$1 was equivalent to 3.75Israeli shekels.