Skip To Content
Get Our Newsletter

Support the Forward

Funded by readers like you DonateSubscribe

Will Pay Limits for Israeli Bankers Spark Mass Exodus?

Israel’s parliament has effectively capped salaries for bankers at $655,000, raising fears that the best minds in the money business will flee the sector for industries with no such limits.

The new Knesset law was designed to soothe public anger over income inequality but has sparked fears of a mass exodus at a time when jittery world financial markets call for experienced hands, Bloomberg reports.

“I hope the law won’t prompt the early retirement of key people at the banks all at once,” Bank of Israel Governor Karnit Flug said at a news conference in Jerusalem on Sunday, the news agency reported. “It’s preferable that such processes be gradual.”

The law, passed March 28, practically limits bankers’ individual salaries to 2.5 million shekels. That’s a healthy 20 times the average Israeli wage, but is less than a third of what CEO’s at the two biggest banks raked in last year.

It may already be having an impact. The head of Hapoalim, Israel’s largest bank, last week said he will quit to seek new business challenges.




Republish This Story

Please read before republishing

We’re happy to make this story available to republish for free under an Attribution-Non Commercial-No Derivatives Creative Commons license as long as you follow our republishing guidelines, which require that you credit Foward and retain our pixel. See our full guidelines for more information.

To republish, copy the HTML, which includes our tracking pixel, all paragraph styles and hyperlinks, the author byline, and credit to Foward. Have questions? Please email us at

We don't support Internet Explorer

Please use Chrome, Safari, Firefox, or Edge to view this site.