Migdal's chief executive for the past decade, Izzy Cohen, told the insurance company's board yesterday he plans to resign. Cohen has accepted an offer to become CEO of Africa Israel Investments.
Cohen will remain at the helm until June 15, or longer if needed.
Migdal Chairman Aharon Fogel thanked Cohen, saying he respects Cohen's wishes to embark on a new path after a decade of success as CEO and 30 years with the firm. "During his tenure as the CEO of Migdal, Izzy Cohen has made a decisive contribution to the expansion of the group's activities, increased profits and created value for its shareholders," Fogel said.
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Cohen, meanwhile, thanked Fogel for his "wisdom, leadership, friendship, and wonderful support and strong partnership" throughout his tenure.
Cohen will replace Erez Meltzer, who was forced to resign as Africa Israel CEO four months ago amid "differences of opinion" with the firm's chairman, Lev Leviev. Leviev's right-hand-man Nadav Grinshpon, who also manages his private business, will continue as acting CEO until Cohen's June 15 starting date.
Africa Israel also published the terms of Cohen's employment with the company. Cohen's salary will cost the firm NIS 3.5 million annually, and he will receive options worth NIS 32.8 million and a grant of between NIS 2 million and NIS 4 million.
Cohen will also receive 3.785 million options with a maturity of two to five years. If he resigns, he will be entitled to a golden parachute equal to six salaries, and will be entitled to up to two years of salary if fired during the first year of his employment.
Migdal, which is controlled by the Italian insurer Generali, operates mainly in the life insurance market, and runs the second largest pension fund in Israel, Makefet.
Migdal recently published its 2007 results, to wit: it netted NIS 1 billion, including about NIS 400 million as a result of regulatory changes that canceled special risk provisions. The firm reported that Cohen grossed NIS 9.5 million last year, including a salary of NIS 4.34 million and other benefits.
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