While most prominent Israeli tech entrepreneurs joined the 'tech protest' against the government's planned judicial overhaul, Mobileye Global Inc. (Nasdaq: MBLY) CEO Amnon Shashua has attempted rather clumsily to walk a tightrope, trying not to upset either side. Shashua's name has been in the headlines many times over the past few months, but while he has previously sought the limelight, it is doubtful whether he has been pleased to feature in the media recently.
The latest occasion was on Monday. Shashua and Mobileye were forced to issue a clarification after he was outspoken during a discussion on keeping user data on servers in Israel. Shashua believed that Mobileye would be compelled to move more operations out of Israel, following demands by the EU to keep user data in countries recognized as democratic. After his comments were leaked to Channel 12 News, the company stressed that, "Mobileye has not considered and is not considering leaving Israel."
On another occasion two weeks ago, Shashua wrote on his LinkedIn page that he was being awarded the Israel Prize for his life's work. He received many congratulations but also a lot of flak for accepting the prize at such a sensitive time.
In February, Shashua presented a conciliatory position that did not rule out reform of the judicial system - unlike most of his colleagues in the tech industry. "It seems that many agree that legal reform is needed in Israel," he wrote in a LinkedIn post and added. "But how is it correct to carry out reform in a complex country like ours? When you are a leader it is important to be cautious, the price of a mistake in implementing an imprudent reform is too great. Don't rush. Stop. Take the time to think, deliberate, consult, and examine the consequences with an open heart and mind."
Only a few weeks later, he had to publish a clarification about an incident that took place at the company. "I make sure not to express political positions despite the pressures on me to do so, with the understanding that I represent all of you. The company's employees represent all sectors of the people of Israel - an absolutely impressive representation," he wrote in March, after one of his employees gave a lecture against the legal reform on his own initiative and presented a hostile legal position. Shashua tried to stay away from the protest but it still found a way into his offices. He wrote, "I understand that the lecture caused a feeling of discomfort among some of the employees who participated in it or heard about it, I regret that and acknowledge that there was an error in judgment - mainly mine - when we approved the lecture."
Close relations with the government
Shashua declined to join the protests of his tech colleagues even before Minister of Justice Yariv Levin presented his judicial reform. The tech protest was initiated in December through the "tech petition" that warned about the changes in the judicial system set out in the coalition agreement. The petition was signed by, among others, serial cybersecurity entrepreneur Shlomo Kramer, Mellanox founder Eyal Waldman, Fiverr CEO Micha Kaufman and Wix president Nir Zohar. Other stood out by not signing, even after the judicial overhaul plan got underway. These included Check Point CEO Gil Shwed, Palo Alto Networks founder and CTO Nir Zuk, and Shashua.
Shwed recently made it clear that Check Point had not transferred its money out of Israel and that there was no change in its policies due to the reform. Zuk, who recently moved back to Israel after many years in Palo Alto and is building his personal businesses here, has yet to express any opinion on the issue.
Each of them has their own reasons. It is likely that some of them oppose the protests, prefer not to identify politically, or feel that this is not the way forward. Shashua and Zuk both work for large US corporations and may see themselves as unable to express themselves politically as much as they might wish, even though Mobileye has undertaken an independent IPO and Shashua has made sure to draw a line around the Israeli company that allows it autonomy within Intel.
But it is hard to overlook the fact that the companies they lead need deep roots in government corridors, and going public against the government could be one step too many for them. Checkpoint and Palo Alto Networks have information security contracts with Israeli government and security agencies, while Mobileye has had a good relationship with the Ministry of Transport and politicians for years. Zuk and Shashua are personally responsible for the establishment of new digital banks in Israel - Zuk is the financier behind Esh, while Shashua owns One Zero.
Mobileye and state authorities have had many points of contact in the recent and distant past. In 2016, the company promoted the legislative guarantee for the installation of advanced safety systems by vehicle importers, and at the same time for the reduction of mandatory insurance rates. In 2017, then Transport Minister Israel Katz led legislation that benefited Mobileye for the installation of voice warning systems about approaching danger zones. The huge deal for the acquisition of Mobileye by Intel that was signed only a few months earlier, together with the billions of dollars paid as taxes to the state, were in the background to all this.
The partnership between the state and Mobileye has been win-win. Israelis enjoy safer vehicles and a discount on insurance, while Mobileye, although it is not the only supplier of safety systems, has derived revenue from the many installations in imported vehicles. Mobileye sees the partnership with the state as more than a net contribution to its coffers: the autonomous car trials conducted in partnership with the Ministry of Transport and the enactment of the safety systems law have set examples for many larger markets in the world and helped develop the Jerusalem-based company overseas.
Mobileye is currently building a huge campus in Jerusalem for thousands of additional employees, and the latest dispute between Shashua and the authorities concerns the helipad that he wants to build on it, and which is opposed by the Ministry of Environmental Protection, currently headed by Minister of Environmental Protection Idit Silman of the Likud.
Between constraints such as cultivating the relationship with government officials, his work at Intel, and Mobileye's diverse workforce, Shashua walks a tightrope. Until now he has tried to present conciliatory positions that satisfy everyone. Shashua is now learning the hard way that he may have to come off the fence and stop being somebody who puts out fires, but does not express his values as one of Israel's most influential business executives.
Published by Globes, Israel business news - en.globes.co.il - on April 5, 2023.
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