Senior economists in Israel are resigning, an escape or a coincidence?

[Limor Wolf]

Israel's news headline of one of the biggest newspapers in the country is wondering out loud wether the last wave of resignations of senior economists is intentional or coincidetal?

Israel's chemicals manufacturing company CEO, Akiba Mozes, announced yesterday morning that he is resigning after 37 years at the company and 13 years in his specific role.Moses is not alone.Leumi Bank CEO, Galia Maor has resigned on Sunday after 20 years, 16 of them as the general manager of the bank. Shlomo Yanai,the CEO of the giant pharmaceutical company -Teva,has resigned the next day,after five years in the job.

Three in one week,where two of them are the heads of the largest industrial stock market traded companies and the other one a senior manager of the major bank in the country,is without a doubt an unusual event.

Zeev hershkovitz - an associate partner at the financial administration company 'Neto outsourcing',is convinced that there is going to be a big wave after the resignation of the three and that there will be many more to follow.

It already started in 2011 with chairman of 'Tnuva',Zehavit Cohen,Director general of 'Super sal',Efi Rosenhause,Chairman of 'Fuel Energy,Yoram torbobitz,the CEO's of 'Cellcom','partner' and 'Mirs' and more,says hershkovitz.

"Many other companies will replace their CEO's in attempt to survive the economic jungle and current storm."





So,are you implying that the senior managers are afraid because of the economic crisis implications and are running away?

"This is not the whole story.a phenomenon was created in many countries around the world,but in Israel its even more radical,were administrators earn imaginary salaries that do no reflect their contribution to society,and is clearly unrelated to their performances.

Amir Kahanovich,Chief Economist of the investment house 'Clal' finances is not ruling out that the wave of resignations is linked to the slowdown of economy as well as to the public protest.

"In recent period,the public started to label managers and owners of companies as pigs,it became a disgrace to be a businessman these days. The public began to refer to them as enemies,the same as in Latin America and other developing countries.Public attitude affects the regulators and politicians and they change conditions,contracts and laws and detriment the business sector and its function keys."
Hershkovitz added: "It is a dangerous process that harms the economy."

http://www.ynet.co.il/articles/0%2c7...2691%2c00.html