Entropy wants dual-listed cos to dislcose pay [Globes, Tel Aviv, Israel]
(Globes (Tel Aviv) Via Acquire Media NewsEdge) Sept. 01--On Friday, Entropy Consultants Ltd., which advises Israeli investment institutions, has requested all dual-listed companies (which are listed on the Tel Aviv Stock Exchange (TASE) and foreign stock exchanges) to postpone their general shareholder meetings for approving executive compensation policies. This is in order to allow "a more thorough debate on compensation agreements and disclosure."
Under Entropy's policy, it will not recommend approving a company's compensation policy unless it discloses the salaries of its executives. Dual-listed companies do not disclose these salaries, so Entropy is expected to oppose all their compensation policies. To avoid this, the companies will discuss the matter with Entropy.
"Globes" recently reported that the Israel Securities Authority announced that it would not require dual-listed companies to disclose their executives' salaries. The decision was made despite the class-action suit against Teva Pharmaceutical Industries Ltd. (NYSE: TEVA; TASE: TEVA), in the context of which Teva announced that it would disclose the salaries of its executives.
It was believed that all dual-listed companies would have to follow suit and disclose their executives' salaries, but the Securities Authority decided to be lenient with them. The backdrop is the decision by Mellanox Technologies Ltd. (Nasdaq:MLNX) to delist from the TASE, and claims of tighter regulation.
(c)2013 the Globes (Tel Aviv, Israel)
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