The average annual salary cost of a CEO of a public company is NIS 2.93 million. The average is based on the financial reports of 446 companies - 70% of Israel's public companies. The average monthly salary cost is NIS 236,000, an annual increase of 10.1% more in real terms. The average monthly salary cost rose by 7.4% in 2009. The last time that CEOs' salary cost had double-digit growth was in 2004.
The average salary cost of a CEO of a public company has risen by 134% over the past 16 years. In 1994, when public companies first disclosed salary figures, the average salary cost of a CEO was NIS 1.21 million, or NIS 101,000 per month.
The average salary cost of a CEO of a Tel Aviv 100 company is NIS 6.85 million. The figure is based on the financial reports of 65 companies. 10 Tel Aviv 100 companies have not yet published their financial reports for 2010, and the other 25 companies are either dual-listed companies or oil exploration partnerships without salaries. The average monthly salary cost is NIS 571,000, an annual increase of 14.1% in real terms. The average salary cost has risen 103% in real terms over the past eight years.
The average salary cost of a CEO of a Tel Aviv 25 company is NIS 11.97 million. The figure is based on the financial reports of 15 companies. Two companies are not included and eight companies are either dual-listed companies or oil exploration partnerships. The average monthly salary cost is NIS 998,000, an annual increase of 29.6% in real terms.
NIS 10 million is the threshold to become one of the 20 highest paid executives in 2010. With the exception of the year in which former Bank Hapoalim (TASE: POLI) CEO Zvi Ziv made about NIS 30 million in salary and benefits, but was forced to return part of it, 2010 was the first year in which the monthly salary cost reached NIS 2 million, most of which was in cash and not capital compensation.
Published by Globes [online], Israel business news - www.globes-online.com - on April 4, 2011
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