MK Haim Katz (Likud ) intends to reintroduce his bill to limit executive salaries in public companies next week, and ask the Ministerial Committee on Legislation to give it official government support. The proposed law, also sponsored by MK Shelly Yachimovich (Labor ), would limit the wages of the highest paid employee in a public company to 50 times that of the lowest paid worker.
The law was originally scheduled for a vote in the committee in March 2010, but was postponed after Prime Minister Benjamin Netanyahu and Justice Minister Yaakov Neeman agreed on the formation of the Neeman committee to study executive salaries. The Neeman committee presented its recommendations this week, which did not include any limits on wages. The committee did, however, recommend strengthening corporate governance and oversight to make it more difficult to pay excessive wage packages. The recommendations were also aimed at the pyramids of control, in which for a very small investment an owner can control a long pyramid of subsidiaries and their subsidiaries.
"We tried to balance all the interests ," said Neeman yesterday during a press conference on the subject. He said one of the recommendations is to reexamine the situation in another two years. Neeman also said that the state applies limitations to public firms, and they will come to the state to ask for help when they run into financial trouble.
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