Israel plan to curb executive wages at financial firms passes hurdle

JERUSALEM, June 29 Sun Jun 29, 2014 8:58am EDT

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JERUSALEM, June 29 (Reuters) - A plan to rein in executive wages at financial firms cleared a key hurdle on Sunday when parliament's legislative committee approved the proposal.

It still needs final approval from parliament's full plenum.

The Finance Ministry has proposed that executive salaries above 3.5 million shekels ($1.0 million) would not be recognised for tax purposes.

The ministry's rationale behind the proposal is that financial firms have a significant influence on the economy in terms of household expenses such as bank and management fees and commissions. It is also seeking to set a standard for wages of senior executives.

Under the plan, such high salaries would need approval from a majority of minority shareholders.

($1 = 3.4227 Israeli Shekels) (Reporting by Steven Scheer)

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