In late July, Melisron Ltd. (TASE: MLSR) shareholders will be asked to approve the salary of controlling shareholder Leora Ofer as chairperson. For a 75% position, her salary cost will be NIS 187,500 per month (NIS 2.25 million a year) for an unlimited period.
Melisron's board of directors, which approved her salary, said, "We were presented comparative compensation figures for the chairmen of public companies listed on the Tel Aviv Real Estate 15 Index, and the opinion of an outside consultant, which specializes in surveys of executive pay. It found that the total compensation is in line with the norm in companies of a similar size."
Until November 2011, Melisron paid its parent company, Ofer Investments Ltd. a management fee of 4.5% of its annual pretax profit, net of other expenses, under an agreement from 1994. This fee totaled NIS 3.2 million in 2011. Ofer Investments owns 66% of Melisron, as well as 20% of Mizrahi Tefahot Bank (TASE:MZTF).
Prior to the death of Yuli Ofer in September 2011, he owned Ofer Investments with his two children Doron and Leora. There is now a legal battle over Yuli Ofer's will. The company's current ownership is Yuli Ofer's estate (36.6%), Leora Ofer (15%) and Doron Ofer (15%). Doron is suing to receive half of Ofer Investments, after Yuli Ofer bequeathed the company in full to Leora in his second will.
Melisron's share price fell 1.1% today to NIS 64.22, giving a market cap of NIS 2.6 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 20, 2012
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