2016 (Mid Year)

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. Additionally, due to the enhanced disclosure requirements in the United States (where many Israeli public companies are traded), current issues like increased executive compensation disclosure have become commonplace in Israeli capital markets.