Options

A startup can start from an idea and grow into an asset worth millions, but what happens if the couple separates along the way? Attorney Merav Aharon explains why entrepreneurs and high-tech employees should think ahead about shares, options, intellectual property, and the side that stays at home.

Henry Shaul Schwarzbaum requested that profits from the sale of Applied Materials shares, received via options, be taxed at a rate of 25%. However, the District Court rejected his claim, ruling that the marginal tax rate must apply, as demanded by the tax assessor. The judge noted that Schwarzbaum benefited from the tax deferral under the agreement and cannot now disavow its terms.

Bank Leumi has canceled an option allocation plan for CEO Hanan Friedman following a Bank of Israel directive. The regulator ruled that executive compensation cannot be linked to the performance of a single subsidiary.