The Israel Securities Authority (ISA) has decided to lift the veil on the salaries of some executives of public companies. Sources inform ''Globes'' that ISA chairman Zohar Goshen has ordered 48 public companies to restate 2009 financials because of errors in approving executive salaries. Alternatively, the companies will have to make immediate announcements of the correction.
Some of the companies may even have to pay fines for the violation. The companies have one week to respond, and tell the Securities Authority what they will do.
The Securities Authority also wants explanations from the companies' auditors. The Securities Authority said, "The guardians of the money failed at their job."
A review found that some companies failed to properly disclose the salaries and benefits of their highest-paid executives. Some companies failed to disclose details about bonuses and stock options.
Among the companies from which Securities Authority has asked for explanations are Kardan NV (TASE: KRNV;AEX:KARD), Delek Petroleum Ltd. (TASE: DLKP.B7; DLKP.B8), Israel Petrochemical Enterprises Ltd. (TASE:PTCH), Israel Financial Levers Ltd. (TASE:LVR), Biocell Ltd. (TASE: BCEL), Hilan Tech Ltd. (TASE: HLTC), Ocif Investments and Development Ltd. (TASE: OCIF), Taya Investment Co. Ltd. (TASE: TAYA), Ananey Communications Ltd. (TASE:ANAC), and Prashkovsky Investments and Construction Ltd. (TASE:PRSK).
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2010
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