Business & Investment

Delek Group Reduces Executive Compensation

Deterioration of position Derek Group Co., Ltd. (TASE: DLEKG), Managed by Yitzhak Tshuva, appeared in a new compensation policy for senior management announced by the company at the end of the previous policy enacted three years ago. The new policy must be approved by the shareholders of the Delek Group, who will meet for that purpose on February 1, 2021.

Under the new policy approved by the Delek Group’s Board of Directors, the maximum annual bonus paid to the CEO and senior VP will be reduced, the salary limit for the Chairman of the Board will be reduced, and the stock-based limit will be reduced. Compensation for senior company officers. For example, Delek Group CEO Idan Wallace’s annual bonus cap will be reduced by NIS 560,000 and CEO’s stock-based compensation cap will be reduced by NIS 1.1 million. The monthly salary cap remains at NIS 160,000.

Overall, the CEO’s maximum compensation package is reduced by 1.6 million NIS annually. Wallace has been CEO of the Delek Group since January 1, 2020, so the new policy will be applied from the second year post.

Wallace receives salaries, benefits and other benefits under an employment contract and costs 2.7 million NIS. With a maximum bonus of 1.4 million shekels, he is entitled to a reward package of up to 4.1 million shekels in 2021.

The monthly salary limit for President Gavilast (100% position) will be reduced from 160,000 shekels to 130,000 shekels. In 2019, Last received a total monthly salary of NIS 121,000, so lowering the cap does not actually affect your salary. According to the company, the last reward in 2021 will total 2.9 million NIS, assuming the largest bonus payment.

The maximum monthly salary for senior VPs is NIS 120,000. VPs whose positions are not defined as seniors receive a monthly salary of up to NIS 85,000. Under the proposed policy, there will be no salary renewals for corporate officers in 2021, 2022 and 2023, with renewals up to 10% each.

In 2019, the Delek Group reported administrative and general expenses of 51 million NIS (parent company only). This is compared to 44 million NIS in 2018 and 42 million NIS in 2017. For the first nine months of 2020, this item was only 37NIS. Based on an agreement with bondholders, the company plans to maintain this item at a maximum of 51 million NIS in 2020, reduce it to 45 million NIS in 2021 and 40 million NIS in 2022. , And NIS 35 million will form after 2023.

Israeli Business News, Published by Gloves- -December 27, 2020

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Delek Group Reduces Executive Compensation Delek Group Reduces Executive Compensation

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