Bank Leumi CEO to resign
Rakefet Russak-Aminoach has held top post at country’s largest bank for seven years
Bank Leumi said on Sunday its CEO Rakefet Russak-Aminoach will step down in the coming months after seven years as head of Israel’s biggest bank by market capitalization.
Russak-Aminoach, who joined Leumi in 2004 as head of the business division, did not provide a reason for her decision in a letter to the bank’s chairman, David Brodet.
“I have decided the time has come to leave my post,” she said in the letter.
Leumi said Russak-Aminoach’s resignation would take effect after the bank’s board chooses a replacement for her.
Russak-Aminoach said she decided to announce her decision before the board chooses a new chairman to replace Brodet, who is leaving Leumi after nine years. The board is due to meet on Sunday to name a new chairman.
Leumi shares were down 1.2% in early trade. Under Russak-Aminoach’s leadership Leumi was the first of Israel’s banks to reach a settlement with US authorities following an investigation into tax evasion by its US clients, agreeing to pay a $400 million fine. Leumi’s chief rival, Hapoalim, is still seeking to reach a final settlement in a similar inquiry.
Hapoalim is also seeking a new CEO after Arik Pinto said he plans to step down at the end of 2019.
Israel Discount Bank, the country’s fourth largest lender, is also searching for a new CEO after Lilach Asher-Topilsky announced earlier this month she would step down to become a partner at the FIMI Fund.
In 2016, Israel passed a law capping bank executive compensation at NIS 2.5m. ($700,908) a year. Before this came into effect, remuneration for senior banks had risen to as much as NIS 8m. a year.