The generous rewards, the stormy scandals and the stocks that plummeted: what happens when politicians join the capital market
A Globes article examines the phenomenon of former Israeli politicians transitioning to senior management roles in public companies. Through figures such as Ayelet Shaked, Ehud Barak, Reuven Rivlin and Moshe Arbel, the article presents a mixed picture: alongside successes like a 55% surge in Cardan Real Estate's stock with Shaked, there were failures such as a 66% plunge in Electreon with Rivlin and a 33% drop in InterCure with Barak. The article quotes market sources who question the added value of politicians.
Eitan Gerstenfeld's article in Globes examines the phenomenon of former Israeli politicians moving into senior management positions in public companies. The article presents a series of prominent figures, including Moshe Kahlon, Ehud Barak, Ayelet Shaked, Reuven Rivlin and Moshe Arbel, and analyzes their economic success against the stock performance of the companies they joined. On one hand, Shaked managed to boost Cardan Real Estate's stock by 55% since joining; on the other hand, Rivlin saw Electreon's value plummet by 66% during his tenure, and Barak recorded a 33% decline in InterCure's stock. The article quotes consultant Keren Kibovich, who highlights the potential advantages of politicians (familiarity with regulation, network of contacts) alongside the risk that they bring mainly door-opening ability rather than real business value. An anonymous capital market source claims their contribution is minimal and that often the match ends in disappointment for both sides. The article does not detail specific scandals, despite their mention in the headline.