The former Schufersal Ltd. (TASE:HOW MUCH) Chief Executive Officer Itzik Abercoen achieved a major victory by being voted on by the board of directors in a vote by the supermarket chain’s shareholders. All five new candidates, including Abercoen, were elected to the board at the expense of two current directors, who asked to be re-elected for an additional term.
All five new directors, including Abercoen, form a majority on the board and are now expected to appoint Abercoen as chairman. The board also has five external directors who did not have to be re-elected.
Shufersal is a company without a controlling core, with most of its shares held by institutional investors. The six largest shareholders are Migdal, Altshuler Shaham, Menorah-Mivtachim, Clal Insurance, Harel and Phoenix, which together hold 60% of the company’s shares.
This week’s vote lifts the curtain on a series of extraordinary events that have shaken Schufersall’s leadership over the past year. The events began with a power struggle between then-CEO Abercoen and former President Yaki Wadmani. This led to the departure of Abercoen after the board supported Wadmani.
Vadmani then tried to lead new business moves before the new CEO was appointed and then chose Israel Electric Corp. Chief Executive Officer Ofer Bloch will replace Abercohen. Institutional investors, who hold large stakes in Shufersal, disliked this behavior and demanded changes to the board during the annual general meeting of shareholders. Therefore, the board decided not to recommend Wadmani for another term and he resigned. As veteran board members tried to retain control of the company, institutional investors indicated they preferred Abercohen’s return to the company.
Posted by Globes, Israel Business News – en.globes.co.il – on June 21, 2022.
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