Max Stock seeks to increase Ori Max's compensation by 51% — to 7.8 million shekels

Max Stock has convened a shareholders' meeting to approve a 51% increase in the annual compensation of the company's CEO and founder, Ori Max — to 7.77 million shekels per year. Yesterday, the company's board of directors approved the change in compensation policy and the update of the terms of Max's tenure, who holds 16.5% of the company's shares, with the goal that they "provide an incentive for continued value creation for the company and its shareholders."

The company is now asking the general meeting to approve a 40% increase in the monthly management fees paid to Max, to 280 thousand shekels per month, compared to the management fees set in the previous agreement, and a 30% increase compared to the current management fees. In addition, Max will be entitled to an annual bonus of 8-12 months of management fees, depending on meeting a net profit target of 130-150 million shekels. The company's net profit in the first half of the year totaled 86 million shekels, so on the face of it, even the upper threshold of the net profit target for calculating the bonus is not challenging.

In addition, the company is asking to approve the allocation of equity-based compensation with a total value of 5.2 million shekels, consisting of options and restricted shares in equal parts in terms of total value: 168,239 options and 114,876 restricted shares. If the meeting approves the compensation update, Max's annual compensation cost will stand at 7.8 million shekels, of which 3.4 million shekels is management fees, 3.4 million shekels is a bonus, and 1 million shekels is equity-based compensation. This is compared to his annual compensation cost in 2025, which totaled 5.14 million shekels and included management fees of 2.6 million shekels and a bonus of 2.5 million shekels.

Max Stock shares have climbed 33% since the beginning of the year and have risen 108% in the last 12 months. Before the publication of the reports today, it opened trading with a market value of about 4.7 billion shekels. This morning, the company published its results for the second quarter, which showed an increase of 12.7% in sales to about 380 million shekels, alongside a sharp improvement in gross and operating profitability following the decline in the dollar exchange rate, and a jump of 35.7% in net profit attributable to shareholders, which totaled 32.6 million shekels. The company announced a dividend distribution of 50 million shekels.