In advance of the shareholders meeting of supermarket chain Shufersal (TASE: SAE) on September 22, the company’s board has recommended revisions to the proposed compensation for Itzik Abercohen, who resigned as CEO of Shufersal earlier this year and then returned as chairperson of the company.
After discussions with the investment institutions, the board has decided that instead of a special bonus of NIS 2.5 million that Abercohen was to have received, which caused an uproar, he will be paid for a six-month notice period, in addition to a six-month "adaptation" period, at the rate of his monthly salary of NIS 157,000, as long as he remains in his post for a minimum of two years.
Abercohen presumably hopes to lead Shufersal back to its former levels of profitability after weak results in the second quarter of this year, and within two years to show business performance that will justify the bonus which, against the background of sharp rises in the cost of living, attracted widespread criticism.
Together with Shufersal CEO Ori Watermann, Abercohen is currently taking action to try to improve Shufersal’s performance and maintain its position as Israel’s largest retailer, with French retail giant Carrefour about to enter the Israeli market.
Shufersal, which does not have a controlling shareholder, has undergone several upsets in its management in the past year. Abercohen himself served as Shufersal CEO for 10 years until March 31, when he stepped down due to differences with then chairman Yaki Vadmani, who was subsequently himself ousted by the institutional investors that control the company. A block of five new directors, including Abercohen, was elected to the board by the institutions, leading to the ousting of Abercohen’s replacement as CEO Ofer Bloch, who held the position for only two months.
Published by Globes, Israel business news - en.globes.co.il - on September 12, 2022.
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