| Management salaries and accompanying benefits will be reduced. Every reduction applied to the Bank's staff will also apply to the management. Members of the Bank's management will be employed under personal contracts which will sever the link between their salaries and the salaries of staff covered by the collective agreement. |
| The Governor of the Bank of Israel has decided to change the arrangements covering the salary and accompanying benefits of the Bank's management, as part of the comprehensive changes in the Bank's salaries arrangement expected to take place in the near future. The Governor announced today that the salaries of the Bank's management will be reduced commensurately with the reduction that will be applied to staff salaries, which is expected to be a progressive reduction. Furthermore, certain salary-related benefits granted to management will be abolished. |
| Members of the Bank's management will be employed under a personal contract which will define their terms of employment, in line with the norms in the public sector. The contracts they will sign will be based on their new salaries after the completion of the negotiations with the Ministry of Finance, and the updating mechanism will be unrelated to the collective agreement covering the Bank's staff. |
| In the first stage several immediate steps will be taken, and the second step will include salaries and pension payment cuts which will be finalized only on completion of the negotiations with the representatives of the Ministry of Finance. |
| The Governor complimented the management of the Bank on their responsible attitude in accepting this decision, and reconfirmed his confidence in their work and professionalism. The Governor also commended management's contribution to the Bank's ability to meet the professional challenges it confronts. |