Bank of Israel to Cut Top-level Salaries

Bank of Israel governor Stanley Fischer has decreed: executive pay at the central bank will be cut.

The governor also decided that the bank's top people will be employed through personal contracts from now on.

Fischer also explained that any future salary cuts will also apply to the topmost echelon.

The reform in management employment terms and pay is part of a wider manpower reform at the central bank.

The executive pay cuts will be of the same magnitude as the other workers face; the cutbacks are expected to be progressive.

Also, Fischer said, certain management perks customary at the Bank of Israel will be abolished.

Pay under the personal contracts, which are the norm at high levels in the public sector, will comply with agreements with the Finance Ministry.

Some of the changes will be implemented right away and others are subject to negotiations with the treasury.

Fischer took the opportunity to praise the central bank management for its responsible conduct regarding the reform.