Another round of stretching between Capital Market Authority To company tower. The Commissioner of the Capital Market Authority, Dr. Moshe Barkat, Has in recent days sent a letter to Migdal’s board of directors in which he explains that a manager at the insurance company will not be able to serve at the same time as the parent company’s CEO, Migdal Holdings.
The rationale behind the decision of the Capital Market Authority is that a manager in the insurance company is subordinate to the CEO of the insurance company, and if he is appointed manager of the holding company, the CEO of the insurance company may be subordinate to him, even though the overlap is not complete. Therefore, the appointment of Ben Baruch, who was appointed to replace Yiftach Ron-Tal, who resigned a few weeks ago as CEO of the holding company (but remains chairman of the insurance company), creates a situation that Barkat opposes.
It should be noted that the CEO of the new insurance company, Sagi Yogev, who is supposed to function between Ben Baruch’s two positions, announced in talks with the Capital Market Authority that he does not oppose the appointment of Ben Baruch as CEO of the holding company.
Last week, Migdal announced that the CFO and Deputy CEO, Yossi Ben Baruch, have been appointed CEO of the insurance company’s holding company. He will take office on January 1, 2022.
Earlier this month, the chairman of the insurance company, Yiftach Ron-Tal, who also served as CEO of the holding company, announced that he was resigning as CEO of Migdal Holdings. Ron-Tal informed the company that he would end his position on December 31, but would remain in the position. Chairman of Migdal Insurance Company.
Ron-Tal’s decision was made against the background of the company’s general meeting decision from the beginning of last month, not to approve an exemption from lawsuits filed against him as part of his position as CEO of the holding and indemnification company for this position, and since his position is incorrect it will continue In addition, the meeting then decided that Migdal Holdings would not share in the cost of Ron-Tal’s salary, which constitutes 10% of the salary payment. He receives the rest from the insurance company, of which he serves as chairman.