The communications company Cellcom Seeks to approve the new CEO, Daniel Sapir, a monthly salary of NIS 110,000, a capital reward worth NIS 6.65 million and an annual grant based on profitability targets.
In summoning the meeting, Cellcom notes the details of the cost of Sapir’s proposed employment, which amounts to NIS 4.4 million a year – NIS 1.3 million in salary, NIS 1.1 million in grants, NIS 1.3 million in capital compensation and NIS 648,000 in other ancillary conditions.
Sapir was appointed CEO of Cellcom after the departure of Avi Gabay, who is leading a group to acquire control of Partner. And reimbursement of expenses. Sapir will also be entitled to receive from Cellcom Car and Liability Insurance Officers. His employment agreement includes provisions regarding non-competition for example 12 months from the end of his employment period.
Cellcom seeks to approve Sapir an annual grant of 10 salaries (a total of NIS 1.1 million), 80% of which will be based on Cellcom’s adjusted adjusted profit (profit excluding interest, tax, depreciation and amortization), compared to the target set in the budget; And 20% will be based on a qualitative assessment of its performance by the Remuneration Committee and the Board of Directors.
The capital compensation that Sapir will receive, subject to the approval of the meeting, is NIS 6.65 million and will be spread over 5 years (ie about NIS 1.33 million for each year of maturity). As part of the capital reward, Cellcom seeks to allocate options to Sapir, which after the exercise will constitute approximately 0.68% of Cellcom’s capital.
Cellcom estimates that the terms of Sapir’s remuneration are reasonable and fair, adding that an external comparative survey was presented to the board of directors, which shows that the proposed monthly salary is lower than the monthly salary of other CEOs in the communications market. Gabay, whose value of the capital package he received was about NIS 12 million – and low compared to other CEOs in the market.