Green light for ₪3.4 million compensation agreement: Hachshara Insurance extends contract of Chairman and controlling shareholder Eli Elezar

Hachshara Insurance's general meeting of shareholders approved the extension of Chairman Eli Elezar's contract for an additional 3 years, at an annual cost that exceeds the tax-recognized salary cap, while waiving the tax benefit.

Hachshara Insurance has extended the employment agreement of Chairman and controlling shareholder Eli Elezar for an additional three years, through October 2029. His annual employment cost will stand at close to ₪3.4 million, an amount exceeding the ceiling for tax-deductible expenses (₪2.5 million). The company justified the decision based on Elezar's unique contribution and alignment with prevailing compensation in the sector.

Hachshara Insurance's general meeting of shareholders approved today (10/11/2026) the extension of the tenure and employment agreement of Chairman of the Board and controlling shareholder Eli Elezar for an additional three years. The approval, granted without changes to existing terms, secures his continued tenure through October 10, 2029, while revealing a high annual employment cost that exceeds the tax-recognized threshold.

Annual cost of ₪3.38 million

According to the approved terms of the agreement, Elezar's total annual employment cost amounts to approximately ₪3.378 million. This sum comprises a gross monthly salary of about ₪155,000 (linked to the Consumer Price Index), alongside ancillary benefits and social contributions. This cost exceeds the cap set by the Law on Remuneration of Office Holders in Financial Corporations, which stands at ₪2.5 million per year.

The company's filing explicitly noted that the approval constitutes "special approval and non-allowance of an expense for tax purposes due to exceptional remuneration." This means the company will pay Elezar's full salary, but will not be able to deduct the amount exceeding the ₪2.5 million cap (approximately ₪878,000) as a recognized expense for tax purposes, and will pay corporate tax on it as if it were profit.

Board justifications: "Significant contribution, a replacement will not be easily found"

The Compensation Committee and the company's Board of Directors justified their decision to recommend the approval of the agreement with several central arguments. In their view, Elezar, who has served as active chairman since acquiring the company in 2006, possesses "professional, managerial, and operational skills" and his contribution to the company has been "proven to be a significant contribution." The Board believes that "a suitable replacement for Mr. Elezar as Chairman of the Board will not easily be found by the company," due to his expertise, broad knowledge, experience, reputation, and the scope of his investment in the company.

The company further noted that the compensation was examined within the framework of a comparative salary survey conducted by an external consultant, which determined that the proposed compensation "is within the range customary for office holders in Chairman of the Board positions in other reporting companies operating in the company's field of business."

Elezar indirectly holds approximately 96.47% of Hachshara Insurance's share capital, through his holdings in Elezar Holdings Ltd. Beyond salary, the employment terms include a licensing group 7 vehicle, telephone expense reimbursements, 26 vacation days, and 30 sick days per year.