Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) today confirmed yesterday's report in "Globes" that CEO Doron Sapir had resigned, against a backdrop of rumors that Migdal controlling shareholder Shlomo Eliahu and chairperson Nir Gilad want the company to change direction. Sapir has been CEO for less than a year.
Sapir told "Globes" today, "I have no regrets. I contributed to Migdal, despite all of the commotion. During my term as CEO, the company continued to install digital tools and systems for the benefit of its customers, and to reinforce its service apparatus. The company also entered the consumer credit business, which will help it in the future. I want to believe that the infrastructure created this year will serve Migdal in the coming years. I leave with my head held high. I went on vacation to the Sahara Desert, and I have no regrets about my decision to leave Migdal on amicable terms and move on." Sapir was commenting on the timing of the report about the search for a new CEO, which happened when he was in Morocco on his first vacation since becoming CEO.
Migdal's notice to the Tel Aviv Stock Exchange (TASE) stated, "Following a year full of challenges… in which he laid essential infrastructure for the group's future, he believes that he should set off on a new path, in which he will be able to utilize all of his capabilities." The company is not setting a date for Sapir's exit, but it appears that he will at least complete a year in his position, which he entered in late June 2018.
It began with a search for a CEO
Migdal's board of directors has authorized Gilad to find a replacement for Sapir. Gilad's search was what actually began the current saga at Migdal. "Globes" recently reported that Gilad has been searching for a new CEO for the company since he became chairperson six weeks ago. Gilad replaced Prof. Oded Sarig, whom Eliahu fired after a few months as chairperson.
Sapir was appointed CEO of Migdal after being CEO of Israel Credit Cards. Before that, he was deputy CEO at Migdal and CEO of Taldor. He is admired as a manager. A market source said that he had "unfortunately become entangled in an impossible situation," while another source said, "They didn't give him a real chance to utilize his capabilities. He is entitled to feel let down."
Sapir has not had a single tranquil moment since he took the place of Ofer Eliahu, controlling shareholder Shlomo Eliahu's son, as CEO. Informed sources say that during his term as CEO, he helped the company develop, and that the turmoil in its leadership would not affect its progress.
Published by Globes, Israel business news - en.globes.co.il - on May 7, 2019
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