An upheaval in Israel’s greatest retail chain: Uri Watermann, the previous CEO of Shufersal, has filed a large lawsuit totaling NIS 5,799,299 towards the corporate within the Tel Aviv Regional Labour Court docket.
The lawsuit, filed by means of lawyers Livian Segal, Lior Reichert, Hadar Kapach, and Ofek Gassman from the regulation company “Meitar | Law Offices”, uncovers a poisonous dating riddled with serious accusations of a “flagrant breach of binding agreements and depriving, fundamentally unfair conduct by a company toward a senior, loyal, and successful executive.”
In step with the observation of declare, Watermann, who served in senior government positions at Shufersal for roughly seven years – first of all because the CEO of the Be chain and later because the CEO of Shufersal – led the corporate via an important and difficult length and used to be extremely preferred by means of the corporate for his contribution and achievements. On the other hand, with the switch of regulate of the chain to the brothers Shlomo and Yossef Amir in 2024, a snowball impact started, which allegedly culminated in cynical exploitation, an act of deception, and the quick, in a single day ousting of Watermann from the corporate.
Within the observation of declare, his lawyers argue that “the facts present a grim picture of cynical exploitation and a deliberate act of deception by the defendant against the plaintiff.”
Uri Watermann. Shufersal ”Merely ousted him sharply and abruptly, in a single day” (credit score: ELAD GUTMAN)
In step with the outline, in early 2024, after the Amir brothers bought 24.99% of the corporate’s stocks, Watermann used to be requested to step down from his place straight away to permit the brothers a swift and easy access into direct control. Watermann’s preliminary place used to be in truth “to prevent the Amir brothers’ takeover of the defendant and to fight the intention to replace him.” To persuade him to relinquish the CEO place, which represented “the pinnacle of any executive’s career” for him, the corporate presented him an enhanced retirement bundle.
In step with the lawsuit, the events reached an in depth retirement settlement that integrated six months of advance realize, six months of an adaptation length, and a unique retirement grant of NIS 3.2 million in money – this being in change for Watermann waiving his annual bonus and unvested choices. The remuneration committee and the board of administrators licensed the settlement unanimously, whilst praising Watermann for having “navigated it through a particularly challenging period, stabilized its management ranks after a significant upheaval it experienced, and led the company to excellent results.” The corporate even introduced a transparent illustration to Watermann that this used to be a “closed and binding agreement” for which the bulk required for approval on the shareholders’ assembly had already been secured.
“Simply ousted him sharply and suddenly, overnight”
On the other hand, after Watermann fulfilled his phase, vacated the CEO chair, transitioned to the function of guide, and assisted the Amir brothers in getting into their roles easily (a transfer that, in step with Shlomi Amir, used to be value “hundreds of millions” to the corporate) – the image modified totally.
In step with Watermann, Shufersal “grossly breached all its duties toward him, completely disavowed its commitments and obligations to him, and even abruptly terminated him unlawfully, without a hearing and without advance notice – simply ousted him sharply and suddenly, overnight.” He claims that “the company exploited the fact that it had already received everything it desired and extracted the benefit it wanted from the retirement agreement.”
The retirement settlement used to be in the end introduced prior to the shareholders’ assembly, nevertheless it used to be rejected. The lawsuit claims that Shufersal used to be the one who actively and in unhealthy religion thwarted the approval. Despite the fact that nearly all of the shareholders supported the settlement, the Amir brothers categorised themselves on the assembly as having a non-public passion and as controlling shareholders – a classification outlined within the lawsuit as “erroneous, false, unjustified, and entirely lacking any legal basis” – only in order that their votes in desire of the settlement would no longer be counted and the proposal would fail.
“The purpose of the erroneous classification… was one – creating a technical-formal presentation that would thwart the approval of the retirement terms, thereby enabling the company to evade fulfilling its obligations.” The lawsuit claims that even after the rejection by means of the assembly, the corporate refused to make use of different felony gear to be had to it (comparable to a board approval bypassing the assembly) to be able to meet its commitments towards him.
Disconnecting the cell phone and significant the go back of the car
The height of this outrageous habits, in step with the civil observation of declare, got here in a while thereafter. On September 15, 2024, Watermann gained a unexpected realize in regards to the quick termination of his employment, and not using a lawful listening to, and with an advance realize of simplest 12 days, as a substitute of the six months that used to be commonplace on the chain. As though that weren’t sufficient, the corporate “went even further and unilaterally disconnected the plaintiff’s personal mobile phone line without prior warning, and demanded that he immediately return the vehicle that served him.”
For the reason that retirement settlement used to be canceled by means of the corporate, Watermann is now suing for the rights because of him by means of distinctive feature of his authentic employment settlement, the customized within the chain, and the regulation. The lawsuit for roughly NIS 5.8 million incorporates the denial of complete advance realize, the denial of six months of adaptation (that are granted as an enduring observe to senior executives within the chain, together with to CEO Ofer Bloch who served for simplest two months), the denial of the 3rd tranche of choices that have been meant to vest, and the denial of the once a year bonus for the yr 2024.
Referring to the once a year bonus, the lawsuit notes that 2024 used to be a file yr for Shufersal with income of roughly NIS 650 million and a “dramatic improvement in results.” Watermann items knowledge within the observation of declare appearing that the Amir brothers themselves gained an advantage of NIS 2,937,000 each and every for the yr 2024 (along per thirty days control charges of NIS 250 thousand), and that deputy CEOs within the corporate gained bonuses similar to 9–10 per thirty days salaries. Regardless of this, the bonus used to be totally withheld from him.
Shufersal mentioned that “Shufersal rejects Watermann’s claims, and the lawsuit, when received, will be answered in the appropriate courts.”
