Electric Corp. Execs Get Bonuses Despite Utility's Huge Losses

During the first three quarters of 2012, the IEC suffered losses of about a billion shekels.

Itai Trilnick
Send in e-mailSend in e-mail
Itai Trilnick

The board of directors of the financially strapped Israel Electric Corp. yesterday approved bonuses to the state-owned utility's chairman Yiftach Ron-Tal, to CEO Eli Glickman and to its legal counsel David Yahav. The bonuses amount to 10% of the officials' 2011 salaries and come to about NIS 161,000 in total.

The bonuses, which the company said are not performance-based, were approved despite the company's having posted a NIS 785 million loss in 2011. The company said the bonuses are part of the executives' annual compensation package.

During the first three quarters of 2012, the IEC suffered losses of about a billion shekels. The utility ran into severe cash flow problems over the year after being forced to spend more on fuel to generate electricity after natural gas supplies from Egypt were cut off. The cash flow problems were accentuated after a major accounting error was discovered that had overstated the company's projected amount of cash. The IEC, which was spared default on its obligations when the state stepped in to guarantee a portion of its debt, says the bonuses are authorized by law and had been deferred. They were originally scheduled to be granted about six months ago.

Ron-Tal is to get NIS 70,000, Yahav NIS 51,000 and Glickman NIS 39,600.

Intellectual property provides multinationals with billions of dollars of taxable profits a year.Credit: Bloomberg
IEC Chairman Yiftach Ron-TalCredit: Nir Keidar



Automatic approval of subscriber comments.

Subscribe today and save 40%

Already signed up? LOG IN


בן גוריון

'Strangers in My House': Letters Expelled Palestinian Sent Ben-Gurion in 1948, Revealed

The Orion nebula, photographed in 2009 by the Spitzer Telescope.

What if the Big Bang Never Actually Happened?


AIPAC vs. American Jews: The Toxic Victories of the 'pro-Israel' Lobby

Bosnian Foreign Minister Bisera Turkovic speaks during a press conference in Sarajevo, Bosnia in May.

‘This Is Crazy’: Israeli Embassy Memo Stirs Political Storm in the Balkans

Hamas militants take part in a military parade in Gaza.

Israel Rewards Hamas for Its Restraint During Gaza Op

Palestinians search through the rubble of a building in which Khaled Mansour, a top Islamic Jihad militant was killed following an Israeli airstrike in Rafah, southern Gaza strip, on Sunday.

Gazans Are Tired of Pointless Wars and Destruction, and Hamas Listens to Them