Securities Authority: Bezeq options approval flawed

The ISA today questioned Bezeq regarding the NIS 111m in stock option grants to executives.

Sources inform ''Globes'' that the Israel Securities Authority believes that the process for approving stock options grants for Bezeq The Israeli Telecommunication Co. Ltd. (TASE: BEZQ) executives was flawed. The Securities Authority today asked Bezeq several questions, including why there was a need to approve such a large amount of options, and what was the rationale behind the approval.

Ten days ago, Bezeq’s board approved NIS 111 million in options for company executives. CEO Yacov Gelbard received options worth NIS 42 million and chairman Adv. Dov Weissglas received options worth NIS 6 million.

“Globes” reported last week that the Securities Authority asked Bezeq for the minutes of the board meeting that approved the executive options. The Securities Authority wants to know if the approval process was proper.

Bezeq handed over the minutes, after which the Securities Authority asked for additional material. Sources said, however, that the Securities Authority was not satisfied with this additional material, and that it believes that the approval process for the options was flawed.

The Securities Authority has notified Bezeq’s directors that they could be personally exposed to lawsuits if it turned out that the approval of stock options grants was flawed.

Published by Globes [online], Israel business news - www.globes.co.il - on March 12, 2007

© Copyright of Globes Publisher Itonut (1983) Ltd. 2007

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