Last night, the Knesset gave second and third readings to the bill limiting the compensation of senior managers in financial institutions. 56 members of Knesset voted in favor of the bill, with none against. The main provision of the new law is that the compensation of the highest paid employee in a financial company will not be greater than 44 times the compensation of the lowest paid employee. The law will apply immediately to new employees, and within six months to all employees. It was passed with the support of both the coalition and the opposition.
"This the first time that we, the members of the Knesset, have made an important social statement, that the excessive pay of the heads of the financial companies is absurd and immoral," said Knesset Finance Committee chairman Moshe Gafni (United Torah Judaism).
MK Shelly Yachmovich (Zionist Union) said, "This is perhaps the most moral law that the Knesset has ever passed."
Earlier yesterday, the Knesset gave a first reading to the "suspension bill" by a majority of 59 for and 52 against. The law provides that a member of Knesset can be suspended for supporting the negation of Israel as a Jewish and democratic state, incitement to racism, or support for an armed struggle against Israel. If the Knesset Committee decides to suspend a member, a majority of 90 will be required in the Knesset plenum to approve the suspension.
Published by Globes [online], Israel business news - www.globes-online.com - on March 29, 2016
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