Israel Corp. CEO received big bonus in 2009
The chief executive of the parent company of troubled liner carrier Zim received a $4 million bonus at the end of 2009 from a chemical company for which he serves as chairman, the Israeli newspaper Haaretz reported Thursday.
Nir Gilad, as CEO of Israel Corp., is chairman of the Israel Corp.-controlled company Israel Chemicals.
The newspaper, in a criticism of the bonus paid to Gilad, said Zim's poor operating results the past two years should have made Gilad think twice about accepting such a lucrative bonus from another of Israel Corp.'s businesses.
'It is a bit outrageous that Gilad — the CEO of (Israel Chemical’s) controlling shareholder, Israel Corp., and a senior partner to the disastrous strategic error at Israel Corp. subsidiary Zim Integrated Shipping Systems — should be padding his personal bank account so fast,' the paper wrote. 'Zim’s insolvency and debt arrangement — the second-largest in Israel’s history — was signed by Gilad, and was necessary partly due to massive insider transactions signed between Zim and controlling shareholders the Ofer brothers (from whom Zim purchased ships costing billions of shekels). Those transactions were approved by Gilad and Zim’s board.'
Zim has leaked money the past two years and required an injection of more than $1 billion from shareholders to stem losses from poor revenue and debts related to the ambitious expansion of its fleet. It has also renegotiated contracts with ship owners from which it charters vessels, promising equity in the company in five years in exchange for more favorable charter terms.
Israel Corp. CEO received big bonus in 2009
