Ministers Unlikely to Support Legal Caps on Executive Pay

A ministerial committee studying caps on executive pay at publicly-traded companies is likely to recommend better oversight, but isn't expected to propose legislation. It is likely to recommend that boards of directors, control committees and general shareholder meetings of publicly-traded companies devote greater attention to the salaries paid to senior management.

The committee, which was formed in April, is scheduled to hear testimony on the issue at the beginning of next week from government officials and representatives of the financial community.

The body was convened after MKs Shelly Yachimovich (Labor ) and Haim Katz (Likud ) proposed a law that would have set the maximum salary at public companies at 50 times the company's lowest salary. The bill was resubmitted last week by the two, who also enlisted the support of MK Marina Solodkin (Kadima ) in a procedural move to bring it to the floor of the Knesset even if it doesn't get the approval of the Ministerial Committee for Legislation and the cabinet.

The committee is chaired by Justice Minister Yaakov Neeman.

Two weeks ago Finance Minister Yuval Steinitz cautioned against measures that would address the problem by creating other problems that would damage the Israeli economy.