Gov't Companies Authority: IAI must change format of employee grants

IAI profits jumped in the second quarter of 2022 by 29% to 129 million dollars.

 Simulation of the new Carmel AFV, to be developed by IAI. (photo credit: ISRAEL AEROSPACE INDUSTRIES)
Simulation of the new Carmel AFV, to be developed by IAI.
(photo credit: ISRAEL AEROSPACE INDUSTRIES)

IAI management must change the format of distributing employee bonuses, Maariv learned was demanded by the Government Companies Authority managed by Michal Rosenbaum.

Rosenbaum insists that the distribution should reflect each employee's contribution to the company according to a supervisor’s opinion and that bonuses shouldn’t be distributed equally among employees.

According to estimates, the company will distribute bonuses estimated at NIS 60 million. This came after employees agreed that IAI should give a dividend worth NIS 650 million to the government. Peretz told Maariv that employee bonuses are acceptable in public companies, just as in private enterprises.

How will IAI employees receive bonuses? 

Peretz stated that the NIS 650 million grant helped lower the cost of living and fuel prices. IAI employees play a key role in the company’s success, shoulder the burden of developing equipment for use worldwide, and are definitely responsible for business success. 

Distributing bonuses will be done in coordination with the government companies authority and are to include an assessment of excellence along with a significant contribution to society. Peretz added that he told the CEO  and CFO to prepare an evaluation procedure to distribute bonuses in accordance with regulations.

 F-16 wings are seen being constructed at an IAI production line. (credit: IAI) F-16 wings are seen being constructed at an IAI production line. (credit: IAI)

The IAI is in the final stages of an IPO that will take place towards the end of the year. This will happen when the Attorney General rules which company's activities should remain confidential and not be mentioned in IPO documents. 

Peretz stated that keeping details confidential will increase the draw of the IPO since investors will understand that the IAI’s full potential is revealed. 

"Profits in the aviation division increased in the second quarter of the year which reflected increased demand in the global aviation industry.”

IAI CEO Boaz Levy

IAI's increasing profits

The IAI is discussing export deals with Morocco (where Defense Minister Benny Gantz recently visited), some Gulf states and several European countries.

IAI profits jumped in the second quarter of 2022 by 29% to 129 million dollars. Sales increased by 9% to 2.6 billion dollars - the highest ever in its history. 

CEO Boaz Levy said that "The figures reflected an increase in net profit and sales. Profits in the aviation division increased in the second quarter of the year which reflected increased demand in the global aviation industry.”