During Comverse’s heyday, another promising Israeli businessman arrived in New York.A partner in founding the Israeli high-tech company Cyota, he was hired to manage a division in the American high-tech company RSM, where he worked until 2006. Today he is minister of education and is in charge of the Council for Higher Education, a body that has a great deal of influence over research incentives.Academic research of this sort hardly exists in Israel.The education ministers throughout the ages, who are in charge of the Council for Higher Education, including Naftali Bennett, have not encouraged implementation.What’s more, this weirdness only grew worse with time: the allocations in 1999-2002 stood out the most.Naifs might think that the stock options motivated the managers to lift their companies to new heights.In contrast to the conventional wisdom in the press, it was not the Wall Street Journal investigators who were responsible, but rather a young finance professor called Erik Lie at the Henry B.
It did indeed strengthen internal enforcement at the companies, following the accounting shenanigans at Enron and the like.
When it comes to corporate governance, for example, Israel adopted a good chunk of Sarbanes-Oxley (through amendment of the Companies Law and the Securities Law). An Israeli committee convened to think of ways to improve corporate governance had decided that adopting Sarbanes-Oxley as is, would be too onerous for the Israeli market.