The reporting season for 2011 ends with the crowning of two new top-paid executives. Both executives are from subsidiaries of Kardan NV (TASE: KRNV;AEX:KARD), which despite a loss of NIS 735 million, incurred salary costs in 2011 of NIS 28.7 million and NIS 28.4 million, respectively, for Kardan Land China chairman Alon Shlank and Globe Trade Centre SA (WSE:GTC) (GTC Poland) chairman Eli Alroy.
Although most of Shlank's salary cost consists of stock-based options in private companies, and his basic salary was NIS 2.3 million, Alroy, who announced last year that he will leave Kardan, received a bonus of over NIS 26 million in 2011. Kardan NV's share price has fallen 88% in the past five years.
The table of the 100 highest paid executives of public companies in 2011 shows that their aggregate salary cost was over NIS 800 million last year.
The third highest paid executive was Zion Ginat, the CEO of Delek Benelux BV, a subsidiary of Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG), whose salary cost was NIS 22.4 million in 2011, mostly in stock-based compensation. The aggregate salary cost of Delek Group's senior management was NIS 65 million in 2011, including NIS 8.3 million for Delek US Holdings Inc. (NYSE:DK) CEO Uzi Yemin, and former Delek Energy Systems Ltd. (TASE: DLEN) CEO Gideon Tadmor. The return on Delek Group's share over the past five years is 28%.
In 4th to 10th place in the salary cost rankings in 2011 are Azrieli Group Ltd. (TASE: AZRG) chairman David Azrieli, with a salary cost of NIS 21.2 million (the return on Azrieli Group's share in the past five years is 9%); Israel Corporation (TASE: ILCO) CEO Nir Gilad, a salary cost of NIS 21.1 million (the return on Israel Corp's share in the past five years is 16%); Israel Chemicals Ltd. (TASE: ICL) CEO Akiva Mozes, with NIS 16.3 million (the return on Israel Chemicals' share in the past five years is 114%); Israel Corp. chairman Amir Elstein, with NIS 15 million; HOT Telecommunication Systems Ltd. (TASE: HOT) chairwoman Stella Handler, a salary cost of NIS 14.8 million, making her the highest paid woman executive (the return on HOT's share in the past five years is 11%); Gazit-Globe Ltd. (NYSE: GZT; TASE: GLOB) US subsidiary Equity One Inc. (NYSE: EQY) CEO Jeffrey Olson, with NIS 13.7 million (the return on Gazit-Globe's share in the past five years is minus 13%); and Israel Corp. CFO Avisar Paz.
Among the insurance companies, Ayalon Holding Ltd. (TASE: AYAL), controlled by Rahmani family, stands out. The annual salary cost of Rahmani family members totaled NIS 17.7 million, including NIS 11.9 million for chairman Levi Rahmani, and rest for his children, Noga and Nechama.
Another prominent insurance executive is Emil Vainshel, the deputy CEO of Harel Insurance, a subsidiary of Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), whose salary cost NIS 6.5 million. He resigned in mid-2011. Also at Harel, the salary cost of deputy CEO Moshe Abramovitz, who left in November, was NIS 8.6 million.
The salary cost of Harel Insurance Investments co-CEOs Michel Siboni and Shimon Elkabetz was NIS 7.5 million and NIS 5.6 million, respectively, and the salary cost of its controlling shareholders, Yair and Gideon Hamburger and Yoav Manor exceeded NIS 13 million.
The salary cost of the six highest paid executives at Menorah Mivtachim Holdings Ltd. (TASE: MORA) exceeded NIS 20 million, including NIS 4.9 million for CEO Ari Kelman and NIS 5.2 million for Menorah Mivtachim CEO Moti Rosen.
In the vehicles sector, Carasso Motors Ltd. (TASE: CRSO) CEO Itzik Weitz stood out with a salary cost of NIS 10.5 million, including NIS 6.5 million in stock-based compensation.
The salary cost of Summit Real Estate Holdings Ltd. (TASE: SMT) controlling shareholder and chairman Zohar Levy was NIS 9.7 million, followed by YH Dimri Construction & Development Ltd. (TASE: DIMRI) CEO Yigal Dimri, with a salary cost of NIS 9.6 million.
In the financial sector, IBI Investment House Ltd. (TASE:IBI) VP trade Ofer Lev stood out, with a salary cost of NIS 7.3 million in 2011, including a bonus of NIS 6.6 million. The salary cost of DS Apex Holdings Ltd. (TASE:DSAP) co-CEOs Ido Noiberger and Victor Shamrich was NIS 13.5 million, in equal shares, and the salary cost of DS Apex CEO Yadin Antebi was NIS 4.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2012
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