El Al Israel Airways Ltd. (TASE:ELAL) CEO Dina Ben-Tal Ganancia unexpectedly introduced yesterday that she is stepping down earlier than the top of the yr. Ben-Tal Ganancia was appointed CEO three years in the past throughout which interval she has been extremely profitable for the corporate, its shareholders and herself, for which she has been nicely rewarded.
Though El Al’s share worth has been falling over the previous month, it has risen 160% over the previous yr and has a market cap of NIS 6.4 billion.
It’s not but identified what Ben-Tal Ganacia’s subsequent place can be and it’s potential that the 50 yr outdated CEO has already obtained affords, with the market betting on administration of a international airline working in Israel. As for the identification of El Al’s subsequent CEO, the corporate’s board of administrators will quickly start contemplating candidates for the place that can change into vacant on the finish of the yr.
The massive achievement: agreements with the corporate’s staff
Ben-Tal Ganancia was appointed CEO in April 2022, turning into the primary lady to move the airline. She rose via the ranks at El Al, after 14 years on the firm, beforehand serving as VP business and business affairs and director of income administration.
She took over as CEO throughout an particularly difficult interval. El Al had not but recovered from the Covid pandemic, which had left it on the point of collapse. Throughout the two years previous to her appointment, the corporate recorded cumulative losses of just about $1 billion, diminished its fleet of plane, reduce its workforce, and required monetary assist from the state and from the one who grew to become the corporate’s controlling shareholder – businessman Kenny Rosenberg.
Since Ben-Tal Ganancia assumed workplace in Could 2022, El Al has seen a pointy restoration in enterprise, particularly after the outbreak of the battle, which left the Israeli service virtually with out competitors on many routes to and from Israel. This dominance translated into hovering airfares and file income and earnings. In complete, the cumulative internet revenue that El Al has achieved underneath Ben-Tal Ganancia’s administration to this point, in just below three years, stands at NIS 2.8 billion. On the similar time, the corporate’s inventory has jumped by over 300%.
Throughout Ben-Tal Gnancia’s first yr in workplace, El Al confronted a labor dispute over the Covid agreements with the state, which diminished pilots’ wages and affected employment circumstances. The dispute led to flight cancellations and an attraction to the Labor Court docket, however ended with a gradual wage settlement that restored pilots’ wages to their earlier stage by January 2023, and ensured industrial peace.
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In lower than a yr, Ben-Tal Ganancia settled labor relations at El Al, resulting in the signing of agreements with the employees committees of the flight stewards, upkeep and engineering workers, and administrative staff, in addition to the brand new wage settlement with the pilots, after a protracted disaster that culminated within the cancellation of greater than 100 flights, many on the final minute.
File earnings in the course of the battle
In October 2023, the battle broke out, disrupting scheduled flights to Israel. Whereas many international airways suspended companies to Tel Aviv, El Al continued to function flights in addition to rescue flights for Israelis stranded overseas. The sharp improve in demand for the corporate’s flights additionally led to a major improve in airfares which led to harsh public criticism that it was making the most of a state of emergency.
As a consequence of lack of competitors, El Al recorded the strongest yr in its historical past in 2024 – a internet revenue of $541 million – 5 occasions the revenue in 2023 (which was additionally a wonderful yr). But it surely additionally needed to cope with a tarnished picture that developed following its enterprise success and public criticism of its excessive fares. The corporate revealed its worth ranges for tickets in economic system class by vacation spot – an uncommon transfer – designed to cut back public criticism and clarify the pricing coverage used within the aviation business.
The primary quarter of 2025 was additionally wonderful for El Al. The corporate ended the primary three months of the yr with internet revenue of $93 million, up 17% from the corresponding quarter. El Al’s market share at Ben Gurion Airport within the first quarter was 44% of all flights, whereas on worthwhile routes to North America it was over 90%.
As for the second quarter, the corporate is predicted to be affected by the 12 days of the Iran operation when Israeli airspace was closed. El Al was then mobilized for rescue flights for Israelis stranded overseas. Following the profitable navy operation, airspace has reopened, and competitors is predicted to return to Ben Gurion Airport. All of this appears to have led to a adverse pattern within the airline’s share worth, which not too long ago misplaced over 10% of its worth from its peak.
Over NIS 20 million remuneration
Ben-Tal Ganancia’s remuneration has amounted to NIS 15 million over three years along with her share choices bringing this to a complete of over NIS 20 million. In 2024 her wage was NIS 6.5 million, about half of which was a bonus from earnings and the remaining was wage and stock-based compensation. Ben-Tal Genancia’s bonus is 2% of the corporate’s earnings, however it’s restricted to NIS 3 million per yr. With out the restrict, the bonus would have been NIS 36 million final yr.
In January 2025, institutional shareholders at El Al thwarted a major wage improve for Ben-Tal Genancia (a 25% wage improve) and the granting of choices price over NIS 10 million at an train worth that was already “within the cash” on the time.
At the moment, there was criticism behind the scenes in regards to the beneficiant compensation provided to the CEO, in addition to to the corporate’s chairman, Amikam Ben-Zvi. El Al, within the view of some institutional buyers, loved a pointy improve in its internet revenue as a result of distinctive circumstances ensuing from the closure of the skies in the course of the battle.
Instead of the choices, which had been canceled for the CEO, El Al compensated her and the chairman with a “particular bonus for 2024.” The bonus was equal to 4 month-to-month salaries, “Because of the uncommon exercise and particular effort of the workplace holders in 2024.” In December about three years in the past, Ben-Tal Genencia was granted choices for El Al shares. In March of this yr, she exercised half of them for NIS 5.3 million (much less their train worth). She nonetheless has choices price about NIS 5.4 million on the present train worth.
Printed by Globes, Israel enterprise information – en.globes.co.il – on July 14, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
