Israeli firms 'lack compensation committees'

A report has revealed that only 26 per cent of the companies listed on Israel's TA-100 Index use a committee to approve their executive remuneration policies.

Carried out by PricewaterhouseCoopers (PwC) Israel, the study was unveiled at the Maala 2010 Corporate Responsibility Conference in Tel Aviv on Sunday (October 31st), the Jerusalem Post reports.

Speaking at the event, PwC Israel's head of compensation and governance Heelee Kriesler said the determination of executive compensation is "one of the yardsticks of quality corporate governance".

She told the newspaper: "The most common practice in the world today is to appoint a compensation committee in the form of a board of directors."

According to the survey, 39 per cent of TA-100 companies said they have a remuneration framework in place for senior managers that links pay levels with performance.

The TA-100 represents the 100 largest firms listed on the Tel Aviv Stock Exchange, which is Israel's only bourse.