Stock Options

At the beginning of the month, it was reported that the Tax Authority is examining a change in the taxation model for options for high-tech employees, and the head of the Tax Authority expressed support for the initiative. However, it now turns out that senior officials in the Ministry of Finance are strongly opposed to the initiative: "The last thing we need right now is to burden high-tech...

Bank Leumi has announced the cancellation of an option allocation for CEO Hanan Friedman. The decision follows a directive from the Banking Supervision Department prohibiting the linkage of executive compensation to the performance of individual subsidiaries.

The Ministry of Finance and the Tax Authority are considering increasing taxes on employee stock options in the high-tech sector as part of the 2027 budget, while proposing a reduction in wage taxes.

A wave of layoffs has hit the Israeli high-tech sector, affecting over 10,000 employees this year. Experts provide essential advice on how to manage stock options to avoid tax pitfalls and financial losses.

Tax Authority Director Shay Aharonovich is considering raising the tax on employee options from 25% to 30%. Critics warn that this move could drive away talent and harm the high-tech sector.