The increase in inflation is not really relevant to the senior officials: the salary of Geb Yam’s CEO, Avi Yaakovovitz, and the annual bonus he can receive have been upgraded – so that the cost of his annual employment may reach up to the amount of approximately NIS 7.3 million. The move was approved yesterday (Tuesday) by the owners The shares of Gav Yam, in a special meeting convened to approve the change in the company’s compensation policy.
The updated compensation policy states that Yaakovovitz’s salary will be increased to NIS 164,000 per month, instead of NIS 149,000 per month as of December 2022 – an increase of approximately 10% in salary. The CEO’s salary will be linked to the increase in the consumer price index, as is customary in most cases. The remuneration policy also stipulates an annual grant of up to 14 monthly salaries for the CEO – that is, up to an amount of approximately NIS 2.3 million. This policy will be in effect until the beginning of July 2025.
In addition, the policy determines the conditions for receiving the same annual grant. “According to the updated compensation policy, Yakovowitz will be entitled to receive the annual bonus if the company meets the threshold conditions for the grant – meeting 85% of the EBITDA target (earnings before interest, taxes, depreciation and amortization – Y.N.) for that year and a minimum EBITDA of 250 million NIS”.
It is further stated in the approved policy document that by achieving results higher than the targets, it will be possible to grant each official in the company a grant of up to 150% of the target grant – up to 14 salaries.
The document details the total cost of Yakovovitz’s employment: the cost of the annual salary amounts to NIS 3.182 million, and the share-based payment is NIS 1.86 million. The annual grant, assuming 100% of the goals are achieved, is NIS 1.467 million, so the total annual employment cost is approximately NIS 6.52 million. However, given a maximum grant, the total cost will reach NIS 7.34 million.
To date, no overperformance has been achieved by the company
As mentioned, the maximum bonus for the CEO, amounting to NIS 2.296 million, depends on achieving overperformance – 50% above the full targets. It should be noted that to date the company has never been able to reach such a performance level, not even in 2021, which was the peak year of the real estate industry. n the yield in which the company operates.
According to the company’s strategic plan for the years 2022-2027 published at the beginning of last year, the company aims, among other things, to increase by 75% the scope of its yielding assets. Among the goals she set for herself: an increase of up to 130% in her EBITDA by 2027, from NIS 497 million to NIS 1.1 billion.
About a month ago, the company published its summary annual report for 2022, which also presented beautiful numbers: the company’s revenues in the past year reached approximately NIS 1.934 billion, and the net profit amounted to NIS 1.167 billion. As of the end of 2022, the company has 1.09 million square meters Park areas for businesses, high-tech, offices, commerce, industry, storage, and it presents 1.035 million square meters of productive areas.