The salaries of CEOs of public companies traded on the Tel Aviv Stock Exchange have doubled in the past 15 years, according to research conducted by the Bank of Israel.
According to the BOI data, the average salary of a CEO grew 104% in real terms from 1995 to 2009 and now stands at NIS 2.5 million. The companies whose CEOs earned the most were banks, insurance companies, and financial services companies. The larger the company, the more the CEO earns.
The BOI study also indicated that CEO salaries were influenced by the size of the company and its earnings and trading performance. However, the study showed, it appears that CEOs salaries are less tied to the company's performance than in years past, so much so that in the past five years a CEO's salary cannot be explained on the basis of the firm's financial performance.
Figures also showed that CEOs salaries were more influenced by the companies' performance in times of economic downturn, and that CEOs are not rewarded for the organization's long-term performance, but only for its performance in the short term (up to two years.)