2024-02-08 04:38:47
The annual race to elect a director at Discount Bank has opened. Yesterday, the Bank of Israel’s committee for appointing directors in banks without a core of control published a notice calling for applications for the position of director in the bank.
At the annual shareholders’ meeting, which will be held later this year, four members will be elected to the board of directors: three regular directors and a director in special status, which is also subject to the conditions of the Bank of Israel (the conditions of NABT 301). It is true that there are quite a few directors, but there are several incumbent directors who are expected to run for another term, so the composition of the board, apparently, will not change substantially.
The directors who are going to run for another term are Sigal Barmak, Doron Avital and Ben Zion Zilberfarb.
Past experience shows that incumbent directors often win the support of the shareholders in the vote and continue for another term, so there is a reasonable chance that in the end only one new director will join the bank.
From the announcement of the committee, headed by retired judge David Cheshin, it appears that priority will be given to women, so that at least two of the directors elected by the shareholders will be women.
It is further stated in the committee’s notice that they are looking for candidates with experience in the field of information technology, and priority will be given to candidates who have experience formulating strategy in large organizations, as well as those who have business background and experience in a senior management position in a financial corporation or a business company that manages a significant volume of business.
The search for a director with experience in formulating strategy in large entities may indicate that the bank wants to formulate a new strategic plan.
In the past year, both the chairman and the CEO changed at Discount Bank – last December Danny Yamin took over as chairman, and in July 2023 Avi Levy was appointed CEO – so these appointments created a natural situation for formulating a new strategy for the bank.
Discount is facing a number of challenges, chief among them the need to sell the credit card company as an entity, as stipulated by law last year. The sale of Cal presents the bank with a dilemma, both regarding the sale procedure itself and the need to develop new growth engines, which will replace the source of Cal’s profitability after the separation.
The committee also notes that an advantage will be given to candidates with a legal background in the field of regulation. The nomination can be submitted during the next two weeks.
Meanwhile, yesterday the bank reported that the shareholders meeting approved the compensation plan for the new chairman Yamin.
According to the established conditions, Yamin will be paid an annual salary of NIS 3.19 million. For comparison, in 2022 the cost of the salary of the previous chairman, Shaul Kobrinsky, was NIS 3.16 million (2023 figures have not yet been published). The entire salary is fixed, since chairmen of the banks’ boards of directors do not receive variable compensation (bonuses and capital compensation). Yemin’s is linked to the consumer price index under preferential conditions, so that even if the index falls, his salary will not be affected.
As part of the Bank of Israel rules, the chairman’s salary compensation is determined in relation to the salary of a director with financial expertise in the bank. According to the discount policy, the maximum ratio is up to six times, and in practice, according to the proposed and approved compensation, it will be 4.98 times in the right’s case.
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