Magal chairman doesn't share the pain
Security fence maker Magal Security Systems continues to lose money, but its senior management isn't sharing the pain. Magal lost NIS 800,000 in 2009 and had cumulative losses of NIS 32 million from 2004-2007.
Revenues fell 5% in 2009 from 2008 but the company slashed expenses, which helped improve gross profits.
Meanwhile, chairman, Jacob Perry, makes NIS 50,000 a month for a just over half-time job. Perry also chairs Mizrahi Tefahot Bank and sits on over ten corporate boards, as well as the boards of a number of organizations.
As Magal fired workers and cut pay in order to streamline, Perry refused a reduction in his own salary last year, saying it would require him to "open up his divorce agreement."
Perry is also entitled to an automatic raise every year.
TheMarker also revealed last year that Magal made a number of questionable deals that caused the company heavy losses, while granting perks to Perry and the Even-Ezra family, one of Magal's owners.
The board also granted former chairman Jacob Even-Ezra a very attractive golden parachute: a $360,000 payment, a $45,000 annual salary, a luxury car and driver - all for the rest of his life. Yizhar Dekel, Even-Ezra's son-in-law, was also granted a NIS 7.2 million severance package.
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