After El Al's share price surged 43.3% over the past three months, putting the airline on track to join the prestigious TA-35 index with a market capitalization of 11.3 billion shekels, company chairman Amikam Ben-Zvi is set to receive an annual compensation package worth approximately 7 million shekels (about $2.3 million). His position would also increase from 90% to full time.
Under the proposed terms, Ben-Zvi would receive a monthly salary of 157,000 shekels (about $51,000). His total annual salary costs and related expenses would amount to 2.63 million shekels (about $847,000), with an additional annual bonus of 1.97 million shekels and share-based compensation valued at 2.43 million shekels.
El Al published a notice Sunday convening its annual general meeting, at which shareholders will be asked to approve Ben-Zvi's compensation. The chairman is a close associate of controlling shareholder Kenny Rozenberg and helped him acquire the airline. Shareholders also will be asked to approve a three-year liability exemption and indemnification arrangement for Ben-Zvi and El Al CEO Levy Halevy, whose compensation will remain unchanged.
The company is also seeking to appoint an unexpected new independent director: Shalom Naaman, one of the founders of the Mahsanei Hashuk supermarket chain, which operates 72 stores.
Naaman serves as co-CEO of the chain alongside his brother, Shaul Naaman, and the two also own a real estate company. This would be Shalom Naaman's first appointment to the board of a publicly traded company. He and Ben-Zvi know each other through the retail industry, where Ben-Zvi previously worked.
(Photo: Ido Wachtel)
El Al shares are currently trading at record highs. Ongoing security concerns and the fact that not all foreign airlines have resumed flights to Israel continue to give the company a competitive advantage, particularly following the attempted attack aboard a flydubai flight.
The incident highlighted for Israeli travelers the perceived advantages of El Al's security arrangements, both aboard its aircraft and on the ground. Market analysts believe it could further strengthen consumer preference for an Israeli airline with Israeli pilots.
Over the past three years, El Al shares have risen approximately 660%, making Rosenberg's acquisition of the airline one of the most lucrative investments of its kind.
Rozenberg initially invested 360 million shekels (about $116 million) to acquire control of El Al, followed by another 40 million shekels (about $13 million) in 2023. His stake in the airline, currently approximately 43%, is now valued at around 4.5 billion shekels (about $1.4 billion).