El Al Withdraws One Million Shekel Severance Bonus for Outgoing CEO Following Institutional Investor Pressure

El Al cancels a million-shekel severance for Dina Ben Tal Ganancia after investor pushback. See how institutional pressure is shaping Israeli executive pay.

By: AXL Media

Published: Feb 24, 2026, 5:13 AM EST

Source: The information in this article was sourced from Calcalist

The Transaction or Development

The management of El Al Israel Airlines has formally removed a request from its upcoming general assembly agenda that sought to provide outgoing CEO Dina Ben Tal Ganancia with a significant financial supplement. Originally, the company planned to award a one million shekel payment to complete her severance package, despite her voluntary resignation. According to reporting by Hofit Cohen Olai, the decision to withdraw the request followed clear signals from institutional investors who indicated they would vote against the measure. This development highlights a growing trend of shareholder activism in Israel, where institutional bodies are exerting greater scrutiny over executive compensation and departure terms.

Regulatory and Competitive Landscape

The withdrawal of the severance supplement occurs within a rigid regulatory framework governing public companies in Israel, where executive pay must be aligned with the long term interests of shareholders. El Al operates in a highly competitive and volatile aviation market, making the optics of large executive bonuses particularly sensitive during periods of fiscal recalibration. According to corporate governance experts, institutional investors are increasingly resistant to "grace payments" or severance benefits that exceed statutory requirements, especially when a leader departs of their own accord. The removal of this agenda item prevents a public defeat for the board of directors and maintains a more stable relationship with major investment blocks.

Strategic Rationale and Market Impact

While the one million shekel severance completion is off the table, the board still intends to proceed with a special grant for the departing executive totaling 830,000 shekels. This payment, which represents six months of base salary for the 2025 fiscal year, is framed as recognition for Ben Tal Ganancia’s leadership during a complex operational period. According to El Al, this specific grant remains on the agenda for the general assembly scheduled to convene this Thursday. The market impact of this compromise suggests that while shareholders are willing to reward performance, they are drawing a firm line at payments that mimic redundancy benefits for voluntary exits.