New law may force the resignations of Israeli execs
The Association of Banks in Israel have petitioned to the High Court of Justice in the country, against a law, due to come into effect in October, that would cap the pay of financial services executives. Reports suggest that a spate of resignations by senior managers is expected in the event that the law does come into effect, and if officials have not changed the law so as to protect the pensions of financial services executives. Bank Hapoalim's incoming CEO, Ari Pinto, may reportedly opt to not fill the post, unless the law is changed.

The Association of Banks in Israel petitioned to the High Court of Justice on Wednesday the law capping pay for financial service executives, after failing to win clarification on how the law will affect pension benefits.

The banks had sought clarification on the issue, but as of Wednesday neither Finance Minister Moshe Kahlon nor Banks Supervisor Hedva Ber had offered any.

The law, which the Knesset approved in March, is due to go into effect in October. If officials have not by then ruled that pension rights are not affected, a spate of resignations by senior managers is expected and Bank Hapoalim’s incoming CEO, Ari Pinto, may opt not to fill the post and risk pension money totaling 10 million shekels ($2.6 million) due him.

The court said the government had until June 19 to respond and that it will hold its first hearing on the matter at the end of the month.