“Shareholder activism in Israel has primarily been executed by local funds and individuals. Key focus areas include remuneration, board independence and board diversity.”
Geoff Serednesky, Managing Director
Country:
Israel
Average % of insider ownership:
Activism
Threat Level
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Shareholder activism and engagement is governed by Israeli Companies Law, which provides certain basic rights to shareholders. The law builds in certain anti-takeover protections that safeguard incumbent boards of directors and limit potential hostile activism; however, this has resulted in increased reverse triangular mergers. Conversely, return-based activism is particularly limited in Israel as short-term corporate profits and other surpluses may only be paid out in part. Due to the enhanced disclosure requirements in the U.S. (where many Israeli public companies are traded), current issues like executive compensation have become commonplace in Israeli capital markets.
Shareholders reaching or exceeding a five percent threshold must disclose their voting interests within one business day or face significant penalties.
Companies may have supermajority voting requirements to change the means or method for the election of directors. While poison pills are not yet recognized by Israeli law, staggered three-year term boards are common practice.
Top Campaigns by Type
1. Remuneration
2. Gain Board Representation
3. Competitive Pressures
Campaigns By Year
Total
Campaigns
Notable Invested Activists
• Spruce Point Capital Management
• Amir Efrati
• Twinleaf Management
Recent activism campaigns
magicJack VocalTec | VS. |
Twinleaf Management |
Caesarstone Sdot-Yam | VS. |
Viceroy Research |
Teva Pharmaceutical Industries Ltd | VS. |
Benny Landa |
Total Active
Campaigns
Contact FTI Consulting
Capital Markets Research and Activist Engagement
Managing Director
+1 312 861 4721
Geoff.Serednesky@FTIConsulting.com
Senior Managing Director
+44 (0)20 3727 1067
Edward.Bridges@FTIConsulting.com