Koor Industries (Nasdaq:KOR) CEO Jonathan Kolber has agreed to waive the exercise repricing of stock options he holds, TheMarker.com has learned.
Kolber may have concluded that Bank Hapoalim, which holds 21% of Koor's equity, would refuse to allow the repricing, which would require the approval of Koor's general assembly of shareholders.
The CEO has also agreed to forgo a NIS 2 million bonus.
Koor president Danny Biran insists on receiving his perk despite the conglomerate's poor performance over the last year. Unlike Kolber, he does not need the assembly's approval to lower the exercise price of his options. He does however need Bank Hapoalim's okay.
Bank Hapoalim representatives had participated in the Koor board meeting at which the directors decided to lower the options' exercise price from $114-$118 to $24. The bank representatives acquiesced to the price cut, including for Kolber's options.
One of the participants, Hapoalim's deputy chairman Danny Dankner, later claimed he supported the move since he hadn't understood that the price cut also related to Kolber's options. He claims Kolber should have left the room during the deliberations.
Koor's spokesman commented that the board had resolved to lower the exercise price of the stock options. "Beyond that, we do not intend to engage in speculation," he said.