Elron CEO resigns amid dispute with Elsztain

Ari Bronshtein

Ari Bronshtein is the latest in a series of IDB Development-Discount Investment group executives who have decided to leave.

Elron Electronic Industries has reported that CEO Ari Bronshtein notified the company board of directors that he would resign his position. Elron said that under the terms of his employment, Bronshtein was due to finish his term as CEO at the end of February 2020. Sources inform "Globes," however, that Bronshtein has actually already left, and is no longer going to his office, as a result of a dispute with IDB Development controlling shareholder Eduardo Elsztain, who is also chairman of Elron's board of directors.

Bronshtein's resignation follows other resignations in companies controlled by Elsztain in the past year. Among others, IDB Development CEO Sholem Lapidot and Discount Investment Corporation CFO Gil Kotler left the group this year, as did Property and Building CEO Segi Eitan. Shufersal chairman Israel Berman was forced to leave his position following a dispute with Elsztain's associates in the summer of 2018. "Globes" reported yesterday that veteran Cellcom chairman Ami Erel was likely to leave his position in the coming months.

Elron, the technology and life sciences investment arm of the IDB-Discount Investment group, has a current market cap of NIS 220 million, after losing 39% of its value this year and 70% in the past three years. Bronshtein has been Elron's CEO since May 2009. His salary cost in 2018 was $653,000 (NIS 2.3 million), consisting of $526,000 in salary and related benefits and a $127,000 bonus.

Bronshtein was appointed CEO of Elron by Nochi Dankner, the previous controlling shareholder in IDB-Discount Investment, after the company reported a $123 million aggregate loss and the group decided that Elron needed a change.

Published by Globes, Israel business news - en.globes.co.il - on December 2, 2019

© Copyright of Globes Publisher Itonut (1983) Ltd. 2019

Ari Bronshtein
Ari Bronshtein
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