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Report: Israeli court blocks new banker pay law

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Report: Israeli court blocks new banker pay law

The Israeli Supreme Court issued July 11 an interiminjunction against the government's plan to cap of senior executives inthe banks and insurance companies, Reuters reported the same day.

The Israeli parliament approved in March a law capping bankand insurance executives' compensation at 2.5 million shekels and subjectingany amount higher than that to higher taxes, the newswire said. The law wassupposed to take effect in October.

Supreme Court Justice Yoram Danziger reportedly noted in theruling that "due to uncertainty and vagueness regarding the legislators'intentions in several significant points of the law," some bank executiveshad already quit while others were considering doing so.

Those opting to quit would have had to submit theirresignations by July 12, which is 90 days before the law was supposed to comeinto force, Reuters said.

Zion Kenan resigned as CEO of Bank Hapoalim BM and Daniel Tsiddon as deputy CEO ofBank Leumi le-IsraelBM in the wakeof the compensation law.

As of July 11, US$1 wasequivalent to 3.88 Israeli shekels.