On Tuesday, Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) shareholders rejected at a special meeting a proposal to grant CEO Homi Shamir 30,000 vested shares.
The special shareholders meeting approved a number of other proposals, including granting Shamir a $516,000 bonus for 2012. However, only 46.3% of minority shareholder voted in favor of granting him vested shares. (To pass, a proposal must have at least a 50% majority).
Half of the vested shares that Given Imaging proposed granting Shamir would mature within two years, a quarter of the shares would mature a year later, and the rest would mature a year after that. In 2010-12, Shamir was granted vested shares with a cumulative value of $2.5 million.
Shamir's base salary is $433,000 a year; the bonus boosts his compensation to almost $1 million.
In the summons for the meeting in September, Given Imaging said, "The Compensation Committee and the Board of Directors believe it is important to grant equity awards to the CEO as part of his total compensation package to align his financial interests with those of the shareholders of the company." The shareholders were not persuaded.
The shareholders also approved Given Imaging's executive compensation policy.
IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, controls Given Imaging through Discount Investment Corporation (TASE: DISI) and Elron Electronic Industries Ltd. (TASE: ELRN). IDB has been trying to sell Given Imaging, with no results so far.
Published by Globes [online], Israel business news - www.globes-online.com - on October 10, 2013
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