Mizrahi chair calls for polygraphs for board
Mizrahi Tefahot Bank board chairman Jacob Perry is expected to call on board members to undergo polygraphs to find out who leaked details of a contentious letter written by CEO Eli Yones. Details about that letter led the Bank of Israel to launch an investigation into Mizrahi's corporate governance. Yones sent his letter a day before former Finance Minister Avraham (Beiga ) Shochat announced he was resigning from the board, reportedly due to disputes about executive compensation. All board members are expected to be asked to undergo polygraphs, including controlling shareholders Leora Ofer and Muzi Wertheim. (Sivan Aizescu )
Banks to reveal details of workers' salaries
The Bank of Israel demanded last week that the country's five largest banks submit detailed data about all their employees' salaries. Once it receives this information, it intends to make it public. Last year, Israel's banking sector employed 48,000 workers at a total salary cost of NIS 16.5 billion, which works out as an average of NIS 28,500 per employee per month. However, this does not convey the full picture, since the salary gaps in the banking sector are enormous: Management and the most veteran employees pull in huge salaries, while thousands of newer employees earn much less. An interim report on increasing competition in the banking sector found that lack of competition and relatively high prices help to fund the sector's high salary costs. (Sivan Aizescu )
Egged may finally leave cooperative past
Egged could soon end its historical status as a cooperative and become an incorporated company, its secretariat has announced. The bus cooperative is preparing for a vote on the structural change, which needs the approval of 75% of members in order to go through. The cooperative's members include half of its bus drivers and all of its retirees. The plan also needs the approval of the Transportation and Finance ministries. The proposed change, which has been under discussion for years, will help Egged adopt itself to a more competitive era, said secretariat head Gideon Mizrahi. (Daniel Schmil )
