Published On: Tue, Nov 25th, 2014

Idan Ofer to pay Israel Corp. CEO $8 million bonus

Nir Gilad and other Israel Corp. executives will receive $14.3 million in bonuses from Ofer’s private company.

Idan Ofer

 

Israel Corporation (TASE: ILCO) CEO Nir Gilad is expected to receive an $8 million bonus (NIS 30 million) for his part in completing the split of the holding company, according to the summons to the company’s shareholders’ meeting published today.

The summons also indicates that CFO Paz Avisar Paz, legal advisor Maya Alcheh-Kaplan, and executive VP business development Eran Sarig will be awarded bonuses totaling $6.3 million. The bonuses will be paid by private companies owned by Idan Ofer, not Israel Corporation itself.

As part of the spinoff of holdings, Israel Corporation shareholders are being asked to approve payment of a $200 million dividend to pay for the tax liability created by receiving Kenon Holdings shares as a dividend in kind.

The Israel Corporation published its third quarter results today, and summoned an extraordinary meeting of its bondholders to approve the strategic measure of transferring part of its holdings to its Kenon subsidiary, whose shares will be listed for trading in New York and Tel Aviv.

Kenon today submitted a prospectus to the US Securities and Exchange Commission in preparation for the listing of its shares for trading in the US, and Israel Corporation issued a summons to its shareholders at the same time in order to approve the spinoff, which will take place through the distribution of a dividend in kind to its shareholders. Holdings in IC Power, Zim Integrated Shipping Services Ltd., Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM), Qoros, and IC Green Energy will be transferred to Kenon.

In the six and a half years, since Gilad was appointed as CEO in mid-2007 and until the end of 2013, the cost of his remuneration reached a cumulative total of $26.3 million, almost half in the form of shares. Sarig also enjoyed lucrative remuneration last year: $1.52 million, including $394, 000 million in salary and the rest in shares.

Published by Globes [online], Israel business news – www.globes-online.com

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