Millions in upgrades and fat bonuses: this is the new salary of Amos Luzon

The controlling shareholder and CEO of the Luzon Group, Amos Luzon, is expected to receive board approval for an update to his compensation terms. The company has convened a meeting for October, with the terms of office and compensation for the controlling shareholder and CEO on the agenda, who is expected to extend his contract for an additional three years, from October 1, 2026, to October 2029.

The jump in monthly salary indicates an upgrade of approximately 38% in the employer's cost. According to the proposal to be brought for shareholder approval, Luzon's monthly management fees (fixed compensation) will jump from 260,000 shekels per month (employer cost, plus VAT) to 360,000 shekels per month (employer cost, plus VAT). In gross terms, this is an increase from 197,000 shekels per month to 280,000 shekels gross per month (plus VAT).

In annual terms (fixed salary only), Luzon's fixed management cost will stand at 4.32 million shekels per year (employer cost), compared to about 3.12 million shekels today.

Alongside the fixed salary, the contract includes a variable compensation mechanism (annual bonus) conditional on meeting a threshold condition of annual profit for the company of at least 20 million shekels:

1. First tier (profit of 20 million shekels and above): Luzon will be entitled to 3% of the annual profit.

2. Second tier (profit of 30 million shekels and above): 3% on the first 20 million, plus 2.5% of the profit above 20 million shekels.

3. Third tier (profit of 50 million shekels and above): 2% of the annual profit.

The variable grant ceiling is limited to the amount of 5 monthly costs, meaning up to 1.8 million shekels per year. For the year 2026, Luzon will be entitled to a proportional grant for the fourth quarter (October–December).

In the event that the company meets the maximum profitability targets and Luzon realizes the full bonus ceiling, the total annual compensation cost (fixed + variable) will reach up to 6.12 million shekels per year (in terms of employer cost). For comparison, under the previous terms of office, the fixed management cost stood at 3.12 million shekels per year.

The company's board of directors and compensation committee justify the financial upgrade by the expansion of Luzon's responsibilities, who will soon appear in court due to matters regarding his project in Or Yehuda, and the set of roles he fulfills in the group without direct additional compensation:

Additional roles without personal compensation: Luzon serves as Chairman of the Board of Directors of "Luzon Ronson", Director/Chairman at "Dorad Energy", and Chairman of "Luzon Credit and Finance".