2013-11-19

Added 2026-08-21

Compensation Policy at Banking Corporations

The directive establishes requirements for compensation policies at banking corporations, mandating that the Board of Directors approve policies annually and ensure alignment with long-term risk management. It sets specific limits on variable compensation, capping it at 100% of fixed pay or 200% with shareholder approval, and requires at least 50% of variable pay to be paid in shares or share-based instruments vesting over several years. The rules also enforce deferral mechanisms for variable pay, prohibit performance-based signing bonuses for new key employees, and require strict controls to prevent conflicts of interest in employee remuneration.

Israel

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