Mizrahi Tefahot Bank (TASE:MZTF) president and CEO Eli Yones has given up his bonus for 2008. The bank's board, under chairman Yacov Perry, agreed to Yones' recommendation to award bonuses to bank employees.
The board also agreed to adjust the bank's bonus structure to the position of the Bank of Israel and global trends.
Yones said, "Continuing the bank's profit trend and the ongoing improvement in its image and positioning as a stable, successful, and leading bank are the result of hard and goal-oriented work demonstrated by the bank's employees last year. There is no doubt that they deserve appreciation and financial compensation for this. Nonetheless, we must not ignore the difficult economic reality and expectations that the recession will worsen in 2009."
Yones advises that Mizrahi Bank's 2008 bonus budget be smaller than the bonus for the bank's 2007 profits. The 2008 bonus should reflect the employees' achievements as well as the economic crisis and public mood.
As for his own bonus for 2008, Yones said, "In such times, I believe that the bonus budget should go entirely to the employees and managers of the bank."
Yones, at his own initiative, forewent his annual bonus under his new contract for 2009-14, which comes into effect in April. His compensation will solely comprise his salary and stock options.
Published by Globes [online], Israel business news - www.globes-online.com - on March 3, 2009
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