Dov Kotler, CEO of Bank Hapoalim (Photo by Yitzhak Gadi Dagon, Magma Images)
A storm in the capital market. Bank Hapoalim goes against its subsidiary Poalim IBI or more correctly against the company’s senior executives: Ofer Greenbaum, Shai Nevo and Yaron Mozes. The bank this evening addressed a scathing letter that came out of the law firm Agmon, Rosenberg Hacohen and claims that the salary conditions of the three are exceptional and not acceptable to him.
It will be recalled that not long ago Poalim IBI reported that it was convening its shareholders to approve an additional (and exceptional) remuneration for the directors of the underwriting company: Ofer Greenbaum, Shai Nevo and Yaron Mozes. In accordance with the updated offer, IBI workers are interested in allocating shares and options to three that will constitute a fully diluted 15% of the company.
More in-
Bank Hapoalim takes an unprecedented step against the offer and even uses its law firm and claims that this is an exceptional offer that is not acceptable in similar companies. “Exception in comparison with similar underwriting companies, both individually for one officer, and also in light of the fact that the remuneration structure in the company has at least three officers with remuneration of the same considerable size, and in other companies – one leading officer.”
“Bank Hapoalim’s lawyers add that the bank appreciates the work of the officers and recognizes their importance to the company.
It should be noted that those who are leading the opposition to the exceptional remuneration policy of the three IBI workers are Yadin Antebi, chairman of Poalim Equity, and Kobi Shalom, the company’s CEO, who is in fact the investment arm of the big bank.
We will explain for a moment how dramatic the developing conflict between Bank Hapoalim and its subsidiary Poalei IBI is: Bank Hapoalim is not only a shareholder in Poalim IBI but is one of the company’s largest customers. There is no issue of Bank Hapoalim that does not go through the subsidiary and it should be remembered that each issue of the bank is in the billions and reads several times a year.
The second thing is the image damage that must not be taken lightly. A conflict between the largest underwriting company in Israel and the largest bank in Israel is not good for the underwriting company. It is the one that feeds on the bank and not the other way around and therefore customers who are undecided between one of the competitors (and without an evil eye there are some, no less and no less tough) who is not in conflict with Bank Hapoalim and the subsidiary is not in conflict.
The skills and abilities (proven over the years) of Yaron Mozes, Shai Nevo and Ofer Greenbaum, who lifted the company after the previous generation left it, must not be underestimated, and return it to the status it had before leaving. And bottom line: this is one of the interesting events flaring up in the capital market today.
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