Below are key takeaways from ISS’ recently released 2025 Israel Proxy Season Preview. The full report is available to institutional subscribers by logging into ProxyExchange then selecting the Knowledge Center and its Library tab and to corporate subscribers by logging into Compass then selecting Governance and the Governance Library or Governance Exchange tab.
- M&A Surge: Israeli M&A activity reached $71 billion in early 2025—nearly five times the volume recorded in 2024—with major transactions in the technology sector, such as the CyberArk–Palo Alto Networks ($25 billion) and Sapiens–Advent ($2.5 billion) deals, shaping the 2025 proxy season.
- Governance Reform: Pending legislation requires majority-independent boards for non-controlled companies, currently comprising 66% independent directors versus 46% for controlled firms.
- Diversity & AI Oversight: Gender diversity is developing slowly, with 28% female board representation at controlled companies, while Artificial Intelligence (AI) risk and ethics are emerging as critical boardroom priorities under new regulatory frameworks.
- Geopolitical & Market Dynamics: Despite regional conflict and a credit downgrade, Israeli indices rebounded strongly (+82% since Oct 2023), driven by the technology and defense sectors.
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By:
Liron Garfunkel, Avraham Hass, Karina Romashevsky Gertsman and Elie Zenou
