Drama at the real estate company: Yigal Damri's new compensation package approved
Following shareholder opposition and an updated proposal, Yigal Damri's compensation terms were approved by a narrow margin. Here are the details of the new agreement.
Just two months after shareholders refused to approve an upgrade to the compensation terms for controlling shareholder and CEO Yigal Damri, as well as the company's compensation policy, management succeeded in passing the decisions at a special meeting — albeit by a very narrow margin.
In the previous attempt, Damri requested a 21% increase in his monthly management fees — from 271,000 shekels to 330,000 shekels — alongside a hike in the annual bonus ceiling from 2 million shekels to 3.1 million shekels in 2026 and to 4.5 million shekels for 2027–2028.
Following opposition from institutional investors, the company issued a new proposal in which Damri partially retreated, reducing the bonus ceiling for 2027–2028 to 3.8 million shekels (a 16% decrease from his original demand). However, alongside the bonus reduction, the threshold conditions were eased: the minimum annual profit required to trigger an initial 2 million shekel bonus was lowered from 300 million shekels to 250 million shekels. Institutional investors were willing to accept these terms.
Under the approved agreement, Damri's fixed compensation cost (including management fees, car, phone, and related expenses) will amount to approximately 4.1 million shekels per year. Including the maximum bonus, his total annual compensation could reach 7.2 million shekels in 2026 and 7.9 million shekels in both 2027 and 2028.
The voting results indicate that even the moderated version did not convince all investors. The clause regarding the extension and amendment of Damri's management agreement was approved by a slim majority of 51.98% of non-interested shareholders. The company's general compensation policy passed with 53% in favor and 47% against. Conversely, the third agenda item — the extension of the employment agreement with Iris Damri — received broad support, passing with 81.51% of minority votes.
Notably, just one day after submitting the updated request, Yigal Damri continued to express confidence in the company, increasing his holdings for the second consecutive day. Within 48 hours, the controlling shareholder invested approximately 1.9 million shekels in purchasing company shares on the Tel Aviv Stock Exchange.
