Israel has introduced one of the world’s toughest curbs on bank executives’ salaries in an effort to narrow a big pay gap between bosses and workers.
The legislation was pushed through by the finance minister, Moshe Kahlon, who, before last year’s parliamentary elections, ran on a platform of lowering the cost of living and reforming Israel’s banks. It was approved in parliament overnight in a 56-0 vote and will take effect in six months.
Bankers’ pay is a sensitive issue in Israel, especially since banks make large profits partly from a wide variety of fees on such things as deposits and withdrawals.
According to parliament’s finance committee, salaries at financial firms have grown substantially in recent years and a quarter of the 40 listed companies in Israel with the highest pay levels are financial ones.
“There is a moral significance beyond the economic significance in this law,” Kahlon said on Tuesday. “It symbolises narrowing pay gaps, solidarity and consideration for the weak.“ Full story...
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The legislation was pushed through by the finance minister, Moshe Kahlon, who, before last year’s parliamentary elections, ran on a platform of lowering the cost of living and reforming Israel’s banks. It was approved in parliament overnight in a 56-0 vote and will take effect in six months.
Bankers’ pay is a sensitive issue in Israel, especially since banks make large profits partly from a wide variety of fees on such things as deposits and withdrawals.
According to parliament’s finance committee, salaries at financial firms have grown substantially in recent years and a quarter of the 40 listed companies in Israel with the highest pay levels are financial ones.
“There is a moral significance beyond the economic significance in this law,” Kahlon said on Tuesday. “It symbolises narrowing pay gaps, solidarity and consideration for the weak.“ Full story...
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