The financial statements released by retail chain Shufersal (TASE: SAE) today reveal that company chairman Itzik Abercohen will receive a special bonus of NIS 2.5 million. The bonus, to be paid to Abercohen after approval by the general shareholders meeting, is due to him because of his "waiver" of the three-month adaptation period to which he was entitled when he returned to the company.
Abercohen resigned from Shufersal in February this year after serving as an all-powerful CEO for over a decade. The bonus is stated to be payable in the light of the fact that he forwent amounts that were due to have been paid to him for his period as CEO.
From the notice of the shareholders meeting it emerges that although Abercohen officially left his post as CEO at the end of March, employer-employee relations with Shufersal remained in place for a number of months. In addition, Abercohen was entitled to an adaptation period.
The company now says that it wishes to maintain the employer-employee relationship with Abercohen, who will have an 80% position as chairperson of the board of directors. It seeks the shareholders’ approval for an annual salary of NIS 4.8 million, composed of NIS 2.29 million cash and NIS 2.51 million in options.
Generous terms are also proposed for newly appointed CEO Ori Watermann, who replaced Ofer Bloch after the latter had been in the job a little over two months. Shufersal is asking the shareholders to approve an annual salary for Watermann of nIS 2.25 million, a bonus of up to NIS 1 million, depending on the company’s performance, plus stock-based compensation of NIS 1 million. The total package will cost NIS 4.3 million annually. The shareholders are due to meet on September 22.
Abercohen’s unusual bonus comes despite the fact that Shufersal’s second quarter results continue to indicate a decline in its performance. Quarterly operating profit was down 42% at NIS 107 million, and net profit fell 55% to NIS 95 million.
Published by Globes, Israel business news - en.globes.co.il - on August 17, 2022.
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