Two and a half months after eight, the Migdal board of directors preferred Ran Oz, the CEO, over Rosen in the dispute that broke out between the two; the board convenes to discuss the terms of his retirement.
Only about two and a half months after taking over as chairman of Migdal Insurance (January 3, 2021), Motti Rosen is ending his position. This morning, Migdal Insurance Holdings reported to the stock exchange, after the board meeting yesterday: “Migdal Insurance, as to the manner in which it will conduct itself, will act to end the term of office of Migdal Insurance in this position.” It was also reported that “contacts that took place with the chairman of the board of directors of Migdal Insurance did not succeed.”
It is not so clear whether this is a resignation or a dismissal; Yesterday it was reported in the economic press that Rosen had submitted a letter of resignation this morning. Migdal reported on the gaps in the versions that: “Motti Rosen’s term is ending in this position,” so it is still unclear.
In any case, it has not yet been decided regarding Rosen’s tenure as CEO of the parent company and as a director in it.
The background to Migdal’s current drama is a tense and hostile relationship between Rosen and Migdal Insurance CEO Ran Oz, which culminated earlier this week, when at a board meeting held that day, Oz announced that it was impossible for him and Rosen to continue working together. Their support is strong and that the good of the company is that he will continue in his position.
Moti Rosen contacted the Capital Market Authority’s commissioner, Dr. Moshe Barkat, in a letter in which he accused Oz of distorting facts, hiding details about the company’s management, denying him access to information and more.
Oz, for his part, wrote to the company’s board of directors in a letter requesting intervention in the dispute; He accused Rosen of defaming his good name before the capital market commissioner, and that Rosen was systematically “overruling” Oz’s decisions and working to overturn them. Despite efforts to bridge the two, including by controlling shareholders Shlomo Eliyahu, as well as by board members, no compromise was reached. The result yesterday – the board preferred Ran Oz over Moti Rosen.
Rosen’s compensation claims
At these hours, the board of directors of Migdal Insurance is meeting again to discuss Rosen’s retirement conditions, which are estimated at NIS 5 million, as he agreed yesterday with the board’s attorney general. It should be noted that Moti Rosen received a grant of NIS 1 million upon entering the position, for “loss of opportunities”, since his official entry into the position was delayed for many months.
Migdal announced in this context that “following the publications in the media regarding the conditions to which he will be entitled, these are subject to examination, and this has not yet been completed.” In any case, the board’s decisions regarding Rosen’s retirement terms also require the approval of the company’s general meeting to be held on April 5th.