Orbotech Ltd. (Nasdaq: ORBK) wants to improve CEO Asher Levy's employment terms. A September 12 shareholders' meeting will be asked to approve an increase in Levy's salary from NIS 130,000 a month to NIS 150,000 (NIS 1.8 million a year - $471,000), retroactive to May 2016.

In addition to his pay hike, Orbotech wants to give Levy a $600,000 one-time capital bonus in the form of vested shares, independent of any performance targets. Levy's 2015 salary cost totaled $1.4 million.

In its summons to the shareholders' meeting, Orbotech stated that its remuneration committee and board of directors were proposing approval of the bonus "in recognition of Levy's leadership and significant contribution to the company's achievements and long-term increase in value for its shareholders since he became CEO in 2013." The achievements mentioned included the acquisition of SPTS two years ago for $370 million, the acquired company's integration, and Orbotech's recent refinancing deals, which the company said "have reduced its leverage and interest expenses, thereby providing the company with the flexibility needed to take advantage of future growth opportunities." Orbotech recent completed a $101 million financing round on Nasdaq, and reserved for itself a $110 million bank loan for the purpose of repaying a loan received from JP Morgan when Orbotech acquired SPTS.

Orbotech, which makes testing systems for electronic devices, has a $1.4 billion market cap.

Published by Globes [online], Israel business news - www.globes-online.com - on August 9, 2016

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