The compensation package of former Mossad chief Yossi Cohen as a director of Doral Renewables LLC, the US subsidiary of Doral Group Renewable Energy Resources (TASE: DORL), amounts to NIS 24 million, according to Doral Group’s annual financials. Most of the sum (NIS 23 million) is in the form of stock-based compensation, and the remainder is a management fee.
In addition, Cohen will receive a $2 million bonus when Doral Renewables LLC makes an initial public offering. Until then he will receive monthly salary of $25,000.
Doral Group, headed by Jacob (Yaki) Noyman and controlled by chairperson Doron Davidovitz and Alon Kesel, who jointly hold 37.6% of the company, posted an exceptional net profit for 2022 as a result of an accounting adjustment. The company develops solar energy farms in Israel and overseas, mostly in the US, where its plans for expansion mainly lie.
The company had revenue of NIS 47 million last year, and posted an operating loss of NIS 34.5 million.
The other four highest earners at Doral, including Noyman himself, Davidovitz, and Doral Renewables LLC CFO Evan Speece, are a long way behind Cohen, with compensation costs of NIS 1-2 million last year.
Cohen’s extraordinarily high compensation is explained by the deal that took place last October and that led to the exceptional profit that Doral Group recorded. The Apollo fund (NYSE: APO) invested $500 million in Doral Renewables LLC through an issue of convertible notes.
Follwing that deal, Doral Group ceased to consolidate the results of the US subsidiary in its financials. That led to a one-time unlocking of a NIS 1.11 billion gain. As a result, Doral Group posted a net profit of just over NIS 1 billion, whereas for 2021 it posted a net loss of NIS 26.5 million.
The exceptional profit, even if it is a one-time event, is still an indicator of the progress of Doral’s US activity. The company is constructing the first phase of the Mammoth Solar project in Indiana (Mammoth North), and reports that the solar panels have started to arrive at the site for installation. It also received building permits for the other two phases of the project, Mammoth South and Mammoth Central, a few months ago. The output of these last two phases is estimated at 1.1 gigawatts.
Published by Globes, Israel business news - en.globes.co.il - on April 3, 2023.
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