Israel Chemicals Shareholders Balk Over Bonuses

YERUSHALAYIM -

Israel Chemicals has been threatened with a lawsuit by shareholders over the payment of excessive bonuses to executives, Globes reported on Tuesday.

Attorney Ronen Adini sent a pre-lawsuit warning letter to the board of directors of Israel Chemicals, the company and its managers. Adini put the company on notice that he intends to file a derivative action on behalf of minority shareholders for the breach of fiduciary duty.

The information was published at the behest of the Israel Securities Authority in the company’s annual financial statements.

At issue is $5 million paid as bonuses to company managers. If the money is not returned within 45 days, Adini will file the action in court. The bonus recipients named were CEO Stefan Borgas and senior managers Dan Chen, Asher Grinbaum, Nissim Adar and Charles Weidhas.

The Israel Securities Authority declined comment on the matter.

Israel Chemicals said it had received the letter and was studying it.