The scope of the incoming chairman of the IEC Dov Bahrav is expected to be discussed at one of the upcoming board meetings, and the new director of the Israel Companies Authority, Michal Rosenbaum, will also be required. Such, and may send a problematic message to both government companies, the energy market and even the capital market. Following the discussion in the board of directors and the approval of Bahav’s appointment as director, the issue of approval and the scope of the position should return to the Companies Authority and the Ministers of Energy and Finance to approve the appointment.
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The rabbi is not currently involved in the work of the IEC’s locating committee to appoint a CEO for the company in place of Ofer Bloch, who resigned and moved to Shufersal. The election procedure stipulates that the rabbi will join the search committee as soon as he takes up the position of director, but the approvals for his entry can take another few weeks.
The rabbi is due to serve as chairman of the Electric Company according to a decision by Energy Minister Karin Elharar, who approved a 50% job on the grounds that the Companies Authority encouraged it. Of the director of the new authority, Michal Rosenbaum. Blinkov issued a circular limiting chairmen of government companies to 50% or 100% of the position.
Until this year, it was possible to define the position of chairman of a government company with a position of 80% -75%, but Blinkov decided that the only option for those who do not want a 100% position is 50%. The former director of the Companies Authority, arguing that in order to attract quality executives to government companies, they should be allowed to engage in another occupation that is essential to them.
Yiftach Ron Tal, the outgoing chairman of the Israel Electric Corporation, served 100% of the time, claiming that a company of this size needs a full-time chairman. This opinion is shared by both members of the board of directors and external parties related to the Ministry of Finance. These believe that in any company the role of the board of directors and chairman is to outline a strategy and the CEO and management to execute it. “The challenges facing the next chairman are too great to fill 50% of the time. What does this convey to smaller government companies? “The same sources even said that in non-government public and private companies there are almost no 50% chairmen.
The rabbi, a former CEO of Amdocs and chairman of IAI, told Calcalist last week that he accepted the position “out of a desire to do for the community and the state and that proper governance requires that most management work be in the hands of the CEO while the chairman will be satisfied” “At 50%. I consulted with Ofer Bloch who agreed with me that 50% is definitely enough. I intend to work as much as I need, and if I need 100% or 120% then I will work 100% and 120% of the job. I do not come for the financial return.”
The IEC is the largest of the government companies and has a financial debt of NIS 30 billion and a balance sheet of NIS 86 billion. The company faces major challenges such as extensive reform and efficiency plans.
The Electric Company responded: “The board of directors does not conduct its affairs in the media. The discussion on the director’s tenure as chairman will take place only after his appointment as director. The procedure for locating the CEO includes instructions for the new director to join the committee upon his appointment. ”