After Prof. Daniel Tsiddon's resignation from <A target=new href=http://www.bankleumi.co.il/>Bank Leumi</a> (TASE: <a href=Javascript:viewInstrument('604611',45,'EN')>LUMI</a>), the financial sector salary cap law has led to the resignation of another key executive in one of Israel's leading financial institutions. Yesterday, <A target=new href=http://www.harel-group.co.il/>Harel Insurance Investments and Financial Services Ltd.</a> (TASE: <a href=Javascript:viewInstrument('585018',45,'EN')>HARL</a>) announced that Amir Hessel (51), who has been deputy CEO and head of Harel's Investment Division for 16 years, since July 2000, will resign.
<p>According to the company's statement, Hessel announced yesterday that he was resigning from all positions in Harel Group, effective October 2016. The statement added "According to Hessel's notice to the company, his resignation is due to the financial corporation executive compensation law."
<p>Hessel's resignation from Harel Group, following the legislation passed in the Knesset earlier this year and currently pending a High Court of Justice decision, is the first resignation of an insurance sector executive. According to insurance market sources, Hessel will not be the last to abandon the industry following this legislation and, if the it remains unchanged, other executives may choose to resign as well, including CEOs.
<p>Estimates made by sources in the insurance sector list several executives who may choose to resign if and when the law comes into effect, including <a href="http://www.clalbit.co.il/" target="new">Clal Insurance Enterprises Holdings Ltd.</a> (TASE: <a>CLIS</a>) CEO Izzy Cohen, Harel CEO Michel Siboni, <A target=new href=http://www.menoramivt.co.il/>Menorah Mivtachim Holdings Ltd.</a> (TASE: <a href=Javascript:viewInstrument('566018',45,'EN')>MORA</a>) CEO Moti Rosen, <A target=new href=http://www.555.co.il/>IDI Israel Direct Insurance Ltd.</a> (TASE: <a href=Javascript:viewInstrument('1090133',45,'EN')>IDI</a>) CEO Raviv Zoller and others.
<p>Harel reveals that Hessel "intends to found a private investment fund and has requested Harel Group to become an anchor investor in this fund…the company told Hessel that it will strongly consider acceding to his request to invest in the fund he sets up, if the investment matches the group's needs, investment policy and procedures."
<p>In 2015, Hessel's salary cost totaled about NIS 3.7 million, after he received compensation of about NIS 3.6 million in 2014.
<p><em>Published by Globes [online], Israel business news - <a href=" http://www.globes-online.com "> www.globes-online.com</a > - on July 18, 2016</em></p> <p><em>© Copyright of Globes Publisher Itonut (1983) Ltd. 2016</em></p>