Cellcom Israel Ltd. Announces Update of its Compensation Policy Proposal for its Extraordinary General Meeting of Shareholders
NETANYA, Israel, September 3, 2013 /PRNewswire/ --
Cellcom Israel Ltd. ("the Company") (NYSE: CEL) announced today the following updates to its proposed compensation policy (attached as Appendix A to the Proxy Statement dated August 5, 2013), which is on the agenda for the Company's Extraordinary General Meeting of Shareholders to be held on Thursday, September 12, 2013, at 4:00 p.m. (Israel time), at the offices of the Company, 10 Hagavish Street, Netanya, Israel:
(1) Base Salary - the Company has agreed to disclose in its annual report the Company's office holders' average base salary percentile in the reported year (in relation to their peer group), which percentile will be based on a peer group analysis conducted by an independent consultant. The Company's current independent consultant is Prof. Moshe Zviran Ltd.
(2) Cash Bonus - any payout of cash bonuses for any year will be subject to an additional minimum requirement of achieving an annual EBITDA of not less than 60% of the Company's EBITDA for the previous year. Such minimum requirement is in no way indicative of the Company's expectations or estimations for any fiscal year, and will be provided in order to assure shareholders that no cash bonuses will be paid to office holders according to the Compensation Policy in years when the Company's performance has deteriorated materially compared to the prior year.
(3) Equity Based Compensation - the annual exercise of shares reserved for issuance upon the exercise of options of all the Company's executive officers will not dilute the Company's shareholders by more than 2% (in regards to option plans which contain a 'net exercise mechanism').
(4) Indemnification - the approval of the compensation policy shall not be considered as approval of the indemnification amount to the Company's office holders (over the amounts received from the Company's insurance policy).
About Cellcom Israel
Cellcom Israel Ltd., established in 1994, is the leading Israeli cellular provider; Cellcom Israel provides its approximately 3.166 million subscribers (as at March 31, 2013) with a broad range of value added services including cellular and landline telephony, roaming services for tourists in Israel and for its subscribers abroad and additional services in the areas of music, video, mobile office etc., based on Cellcom Israel's technologically advanced infrastructure. The Company operates an HSPA 3.5 Generation network enabling advanced high speed broadband multimedia services, in addition to GSM/GPRS/EDGE networks. Cellcom Israel offers Israel's broadest and largest customer service infrastructure including telephone customer service centers, retail stores, and service and sale centers, distributed nationwide. Through its broad customer service network Cellcom Israel offers its customers technical support, account information, direct to the door parcel delivery services, internet and fax services, dedicated centers for the hearing impaired, etc. In August 2011, Cellcom Israel completed the acquisition of Netvision Ltd. 013 Netvision Ltd., its wholly owned subsidiary, is a leading Israeli provider of internet connectivity services and international calling services. Cellcom Israel, through its wholly owned subsidiaries also provides landline telephone communication services in Israel, in addition to data communication services. Cellcom Israel's shares are traded both on the New York Stock Exchange (CEL) and the Tel Aviv Stock Exchange (CEL). For additional information please visit the Company's website http://www.cellcom.co.il
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SOURCE Cellcom Israel Ltd.