Peax Solutions approves compensation policy despite opposition from a third of voters

At Peax Solutions' annual general meeting, a new compensation policy was approved, but not without drama: 33.4% of the votes participating in the vote opposed the move, signaling a significant rift between some investors and management.

Peax Solutions approved all items on the agenda at its annual general meeting, including the re-approval of the compensation policy. However, the compensation item faced significant opposition from 33.4% of voters, reflecting discontent among a sizable minority of shareholders. The remaining items, including the appointment of directors and the auditor, passed smoothly.

Information services company Peax Solutions (formerly E.M.T. Computers) reported the results of its annual and special general meeting held on October 4, 2026. While most meeting items, which dealt primarily with reappointments, passed without difficulty, the vote on approving the company's compensation policy revealed fierce opposition from a significant minority of shareholders.

According to the filing submitted by the company to the TASE, the compensation policy was re-approved, but encountered opposition from 3,638,855 shares, representing 33.39% of all votes participating in the vote on this item. 7,260,653 shares (66.61%) voted in favor of the policy. In total, approximately 10.9 million shares participated in the vote, representing a voter turnout of about 24.4% of the company's total voting rights, which stand at approximately 44.7 million shares.

Approval of a compensation policy requires a special majority. According to the Companies Law, a regular majority among all voters is required, along with the fulfillment of one of two additional conditions: a majority among shareholders who have no personal interest, or that the opponents from among this group do not constitute more than 2% of the company's total voting rights. In Peax's case, the proposal passed because it achieved a 66.61% majority among voters (all of whom were classified as having no personal interest). However, the second condition was not met, as the rate of opponents out of the company's total voting rights stood at 8.14%, significantly higher than the 2% threshold.

The prominent opposition focused exclusively on the compensation item. The remaining seven items on the agenda were approved without similar opposition. Among other things, the meeting re-approved the tenure of directors Gilon Bek, Amit Ben-Zvi, Ehud Lavi, and Ofer Schahak, as well as the appointment of Alon Badash as an external director. In addition, the re-appointment of the accounting firm Kost Forer Gabbay & Kasierer (EY) as the company's auditor was approved.

The gap between the smooth approval of the director appointments and the opposition to the compensation policy marks this issue as a sensitive point for some of the company's investors. Although the decision passed, the company's management and board of directors will not be able to ignore the message sent by a third of the voters at the meeting.