Bank Leumi (TASE: LUMI) chairman Eitan Raff (68) is resigning. He announced today that he would not seek reelection as a member of the board of directors, and that he will leave when his term as director is up in a few months.
Raff earlier notified the Bank Leumi appointments committee chairwoman Shlomit Nof of his decision. Raff has been chairman of the bank since April 1995, after previously serving as Ministry of Finance accountant general. Sources close to Raff said that if had wanted to stay on, he would have been easily reelected, but that he chose to retire instead.
Sources inform ''Globes'' that, following Raff's decision, the bank's appointments committee will submit five candidates for director to the bank's next general shareholders meeting. Four of the candidates are National Economics Council chairman Ori Yogev, former Israel Securities Authority chairman Moshe Tery, Prime Minister Benjamin Netanyahu associate Izzy Tapuchi and former Israel Discount Bank (TASE: DSCT) chairman Arie Mienkovitch.
The fifth candidate has not yet been determined, and it is possible that one of Bank Leumi's current directors who term is expiring will be asked to remain on the board. Bank Leumi's next general shareholders meeting is scheduled for March 7.
This morning, Raff told "Globes", "After 15 years [as chairman], I've fulfilled myself. I'm 68 and I want to do other things. I joined Israel's number two bank 15 years ago and I turned it into the country's number one bank, which leads the banking system by far."
Another candidate for a directorship at Bank Leumi is former Bank of Israel governor David Klein, who will be nominated by Shlomo Eliahu, Bank Leumi's largest private shareholder. Despite some legal questions about Eliahu's ability to nominate Klein, the Bank of Israel will not oppose the nomination, on the grounds that Bank Leumi's shareholders will not vote for him.
Bank Leumi's share fell 3% by mid-afternoon today to NIS 16.25.
Published by Globes [online], Israel business news - www.globes-online.com - on January 24, 2010
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