Katzman arranges a golden parachute of millions for G City CEO in case she is replaced

Just before the transfer of control in the income-producing real estate company G City, businessman Chaim Katzman is acting to accelerate the appointment of Keren Khalifa as the company's CEO and to approve a generous golden parachute for her in the event that she is replaced by the new controlling shareholders. This comes after it was reported in Globes earlier this week that the transfer of control from Katzman to businessmen Tzahi Abu (Ari Nadlan) and Yaron Adiv and Kidan Dahari (Ishpro) might thwart the appointment of Khalifa, who was supposed to take the CEO position at the beginning of next year.

As part of the move, which is being promoted by the current G City board of directors and requires the approval of the shareholders' meeting, Khalifa will take the position as early as the beginning of this coming October, instead of the beginning of February next year. In doing so, Khalifa will take the place of Katzman, who announced last month his intention to retire from managing the company he founded, as part of a move to sell control of it.

In the event that Khalifa's appointment is approved at the meeting in early September, she is expected to receive a salary with an annual cost of approximately 4.4 million shekels. Within this, she will be entitled to a base salary with a cost of 2.3 million shekels, alongside an annual bonus that may reach about 1.3 million shekels, as well as equity compensation worth 855 thousand shekels.

In addition, it was determined that in the event that Khalifa's employment is terminated within a period of one year after a change of control in the company, she will be entitled to an exceptional golden parachute — a bonus in the amount of 200% of her annual base salary for that year (4.6 million shekels in total).

Those who may express resentment regarding Khalifa's employment terms, and especially the golden parachute she will receive in the event that she is replaced, are those expected to become the controlling shareholders in G City, Abu, Adiv, and Dahari, who have declared since signing the agreement to purchase control their intention to reduce the company's management costs after the control transfer deal is completed.

For example, in a conversation with investors after announcing his intention to purchase control from Katzman, Abu said that he "does not see any reason in the world why expenses should not decrease by at least 50%". According to him, the cut is expected to apply initially to senior management, but "this trend will go and penetrate throughout the entire general management system of the company".

Katzman's right-hand woman

Khalifa arrives at the CEO position after being appointed CEO of G City Israel in 2022. In 2023, she was appointed Chief Operating Officer, and a year later she was also appointed Deputy CEO of the company.

Khalifa came to G City after eight years at the Harel insurance company, where in her last role she served as VP of Assets. Previously, she held a series of senior management positions in the field of income-producing real estate and development.

"I am happy and welcome the appointment of Keren to the position of CEO of the company," said Chaim Katzman, CEO and controlling shareholder of G City. "I have worked with Keren for the last four years, I have seen up close the scale and depth of her knowledge, the enormous appreciation she enjoys in the real estate market in the country and in the world, both from parties with whom we come into contact and from the company's employees and managers. Beyond being a professional in the field, Keren has the proven ability to manage a multi-arena, multi-participant system like in our group. Keren knows every employee, every asset, and every plan in the group, and I am sure that all these will allow Keren, together with the management and our dedicated team of employees, to lead the company to new heights."