According to a “Globes” study, the average salary cost of the CEO of a Tel Aviv Stock Exchange (TASE)-listed company was NIS 187,000 per month in 2008.
“Globes” has tracked CEO salaries for 15 years, and this year the project entailed 558 companies (not including firms where there were no salaried employees or whom did not file their report), covering close to 3,000 executives.
The average salary figure reflects an annual salary cost of NIS 2.24 million.
These salaries have risen by 98.2% in real terms since 1994 when the average salary of these CEOs was NIS 94,000.
For the 100 large cap companies that make up the Tel Aviv 100 Index, the annual salary cost is NIS 5.14 million, or NIS 428,000 per month.
Among the largest companies, those who make up the Tel Aviv 25 Index, the average salary cost was NIS 9.35 million, or NIS 779,000 per month.
The figures show that the average CEO salary is 49 times the minimum monthly wage. An employee earning the average salary of NIS 8,189 needs to work 23 months in order to earn the monthly salary of a public company CEO.
There were three women among the top 100 highest paid executives. The highest earning woman was Shikun & Binui Ltd. (TASE: HUCN) chairwoman, and former Netvision CEO,Ravit Barniv. Her average monthly salary cost was NIS 700,000, including options granted as a bonus.
The second highest paid female executive was Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) CFO Irit Iluz whose average monthly salary was NIS 454,000, while in third place was Makhteshim Agan Industries Ltd. (TASE: MAIN) legal advisor Michal Arlozorov who earned an average salary of NIS 383,000.
NIS 1.22 billion was the cost of the combined salaries of the CEOs of the 558 companies who took part in the report. This was the same nominal figure as in 2007.
The average cost of the salary of a company CEO in 2008 was NIS 187,000 per month in 2008 down 7.82% compared with NIS 203,000 in 2007, which was 8.38% higher than the average cost of NIS 187,000 in 2006.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009