Under a settlement reached between Israel Discount Bank (TASE: DSCT) and investment institutions, the 2013 bonus of the bank's chairman, Yossi Bachar, will be cut by 30% from NIS 2.16 million to NIS 1.5 million. "The decision to waive part of the bonus was made jointly with the compensation committee, taking the shareholders' position into account," said the bank.
The decision reduces Bachar's salary cost for 2013 to NIS 3.41 million. NIS 1.02 million of the salary cost was set aside, following the revaluation of his stock options. In other words, his salary cost was NIS 4.4 million, including salary, options, bonus, employer provisions, and benefits.
In a report to investment institutions, Entropy Consultants Ltd. recommended rejecting Bachar's bonus, because Discount Bank failed to meet all its targets, and it concluded that his bonus reduction was insufficient. In view of the public anger at executive salaries in the financial sector, and Entropy's objections, the bank decided that discretion was the better part of valor and settled to avoid embarrassment at the general shareholders meeting.
Published by Globes [online], Israel business news - www.globes-online.com - on June 18, 2014
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