Salary of seniors in Israel increased by about 13% in 2021 and averaged about 1.93 million shekels

The salary of senior officials in the economy increased by about 13% in 2021 and averaged about 1.93 million shekels, compared to about 1.71 million shekels a year earlier.The average salary of senior executives even exceeded what they received in 2019, before the corona virus, when it was about NIS 1.86 million - an increase of about 3.5%.
This is according to the data of an economic study recently conducted by the consulting and accounting firm BDO in the field of remuneration of senior officers, which monitors the salary of the five senior officers (Chairman, CEO, CEO of a subsidiary company, deputy CEO, VP) to funds, and more - depending on the company) in the public companies traded on the local stock exchange.
The banking service to customers has been significantly damaged in recent years as a result of the transition to digital, which allowed the closing of physical branches that are mainly lacking for customers who lack technological literacy. Despite this, the executives who placed themselves at the top of the compensation scale in 2021 come from the banking sector, with an average salary cost of approximately 3.1 million shekels per executive this year, which is approximately 600 thousand shekels higher than the average salary cost of those following them - the executives from the insurance sector.
The average wage cost table is signed from the bottom with senior officials in the field of gas and oil exploration, but the lining of the bottom in the form of an average wage cost of about NIS 1.48 million in 2021 is surely compensation for the low position...
Among the multitude of executives competing for the size of the salary, it was a surprise to discover that it was the CEOs of the biomed companies, who were rejuvenated during the Corona period after about a decade and a half of lows in the companies' shares, reaped the highest average compensation in 2021, which was about NIS 4.3 million on average - about two-thirds of it in shares.
The CEOs of the real estate and trading companies are right after them with a total compensation of about 3.2 million NIS, which even surpassed the total compensation of the CEOs of the technology companies, which was about 2.89 million NIS in 2021.
The latter are among the only ones whose total annual salary in 2021 recorded a decrease compared to 2019, before the corona virus, when it was about NIS 3.47 million - a decrease of about 17%. The crocodile tears of the companies' investors are already felt in the value of their shares.
Adv. Edva Blames, partner and director of senior compensation at the consulting and accounting firm BDO, which conducted the study, told Walla! Money that "the total compensation package in 2021 returned to the extent it was in 2019 in most branches of activity of the listed companies.
However, the compensation mix has changed, so that the salary packages are more based on variable rewards and capital grants, at the expense of eroding the proportion of the fixed component. We estimate that this trend will continue, in light of the need to retain managers and talent for the long term, but in light of the state of the markets, it is not certain that this trend will benefit the office bearers."
The survey found that while the fixed salary of senior executives from all companies and positions represented about 64% of their total compensation package in 2019, in 2021 it already represented only 56% of it, and even decreased by about 9% compared to its level then. The remaining space was occupied by the variable component, which is based on compensation in shares and jumped by about 26% in the amount of compensation compared to where it was before the corona virus.
And what about the wages of the workers? The calculation of the average gross salary data in the economy shows an increase of about 5.7% in 2021, in which the average salary in the Israeli economy was about 11.35 thousand shekels, compared to an average salary of about 10.73 thousand shekels in 2019, before the corona virus.
But the figure for the average salary in the economy is misleading, since it also includes the salary of senior executives mentioned earlier, and does not include the income, or lack thereof, of those who resigned from the corona virus who did not return to their previous jobs, and perhaps even left the workforce in favor of studies, abroad or unemployment , and the silent resigners.
While the average annual wage cost of office holders in 2021 grew by about 13% compared to the previous year, the average annual wage cost in the Israeli economy only increased by about 0.5%. Therefore, the "pi" index (how many times the managers' salary is higher than the average salary in the economy) rose from 9.9 to 11.1.
In other words, the inequality between the high wage earners and the working class in the economy has widened, and this despite the fact that the quiet resignations, the employers' need for workers, and the many high-tech recruitments, painted an opposite picture.
Attorney Blames explains: "In 2020, the average annual wage cost of the office bearers eroded by 8% compared to 2019, while the average wage cost in the Israeli economy was in the opposite direction, increasing by about 6.5%.
A possible explanation for this trend is the layoffs and forced unpaid leave that were part of the Corona crisis period, during which the seniors continued to work but the juniors were fired or went on unemployment. This left a situation in which the seniors alongside highly paid employees, mainly in the technology industries and the public sector, pulled the average cost The salary is higher."
"In France there are two types of people: those who hide their payslips, and those who are ashamed to reveal them in public" wrote the French writer Georges Volinsky. Where is your slip on this scale?