200,000 Shekels Monthly Salary: Azorim Chairman's Compensation Terms Revealed
The board of directors of Azorim is set to extend the tenure of chairman Gershi Friedman for another year. Details regarding his monthly compensation and bonus structure have been disclosed.
On September 24, the board of directors of Azorim will convene to re-approve the extension of Gershi Friedman's tenure as chairman of the board. The board is expected to approve the continuation of his employment terms by a majority vote, including indemnification undertakings and insurance coverage for directors and officers. The key question remains: what is the compensation package for one of Israel's leading real estate figures?
According to the approved terms, Friedman will continue to serve in the position with a 90% scope of employment. His salary and terms remain unchanged, placing him among the highest earners in the real estate market among large public companies.
However, our analysis indicates that many senior executives in the market earn salaries of at least 120,000–150,000 shekels. It is important to note that when compensation is paid via invoice, less than 50% of the gross amount remains in the executive's hands, though they may be entitled to additional rewards.
The cost of Friedman's employment, per the agreement, is 200,000 shekels per month (paid via invoice). Additionally, he is eligible for an annual performance-based bonus:
If the adjusted consolidated profit before tax and grants is less than 150 million shekels in a given year, he is not entitled to a bonus.
If the company reaches 150 million shekels in profit, Friedman receives a bonus equivalent to 6 months' salary. For every additional 25 million shekels in profit beyond that, he receives a reward of one monthly salary (200,000 shekels). Should the company double the defined profit, he may receive 6 additional salaries, subject to a ceiling of 12 rewards and a maximum of 1.75 million shekels.
The agreement also includes an adjustment grant equal to six months' salary. The company reserves the right to terminate his tenure without notice or severance in the event of a fundamental breach of contractual obligations.
Furthermore, the company covers vehicle and telephone expenses amounting to 10,000 shekels per month. Taken together, these terms represent a high, though not unprecedented, salary level compared to chairmen of other large public companies.
