NextVision (TASE: NXSN) looks like the biggest success story of recent years on the local stock market. The company, which was floated less than five years ago at a modest valuation under NIS 410 million, is now expected to be promoted to the list of stocks making up the leading index on the Tel Aviv Stock Exchange, the Tel Aviv 35 Index, with a market cap of NIS 13.6 billion.
NextVision designs and produces stabilized miniature cameras for both military and civilian use.
Besides the investors in the company, who have made a phenomenal return over the years, the three founders, Chen Golan (chairperson), Boris Kipnis (CTO) and Michael Grosman (CEO) have made huge gains. The value of the shares they hold has soared to hundreds of millions of shekels, and they have sold some along the way. Moreover, dozens of the company’s employees hold options that, on paper, have yielded gains of over NIS 1 million each on average.
Earlier this week, the NextVision board of directors sought to approve exceptional compensation for Grosman – options worth NIS 15 million. The award requires the approval of the general shareholders meeting, due to take place in a month’s time. Under the proposal, the company will allocate to Grosman 250,000 options convertible to shares at NIS 146.70 each. The exercise price is 2.5% below the company’s current share price, meaning that the options, which Grosman will be able to start exercising only in two years’ time, are already in the money.
The company explains the allocation as reward for the offering carried out earlier this month in which the company raised almost NIS 1.4 billion, mainly from foreign institutions, in one of the largest offerings on the Tel Aviv Stock Exchange in recent years. In addition, the company points out Grosman’s educational qualifications, experience, and familiarity with the company as justifying “the creation of appropriate incentives.”
This is not the first time that Grosman has received options. Earlier this year, the company allocated options to him worth NIS 5 million, after compromising on the amount because of objections from the financial institutions. In the past three years, Grosman has exercise options on NextVision shares to the tune of NIS 157 million. This is in addition to a salary of NIS 9.5 million last year, half of it in stock-based compensation. If the current allocation of options (spread over several years) is approved, Grosman’s compensation cost for 2025 will be NIS 9.7 million. He also holds shares in the company worth some NIS 124 million.
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The two other founders have also benefited in recent years from the exercise of options in the millions of shekels. Golan and Kipnis currently hold NextVision shares worth NIS 666 million and NIS 950 million respectively. Each is paid an annual salary of NIS 3.7 million.
Employees gain millions on paper
As mentioned, it is not only NextVision’s senior managers who have benefited from the sharp rise in the company’s share price. Over the years, NextVision has awarded options to many employees as part of a general plan consisting of two million options. The options are believed to have been awarded to most of the company’s 100-plus employees (not equally).
At the beginning of this week, the company announced the award of options worth NIS 8 million to ten employees. If history repeats itself, they are on their way to becoming millionaires: just under two years ago, NextVision awarded options to 30 employees who are not in senior management. The employees concerned will be able to exercise these options this February, and, unless there is a dramatic change in the share price, they will post a very significant gain. On the basis of the current share price, the options are worth almost NIS 63 million, while their exercise price totals just NIS 16.4 million, meaning that the employees have posted a gain on paper of NIS 46.5 million, or over NIS 1.5 million each on average.
A year later, in early 2025, the company awarded additional options to 23 employees. The options will mature starting from the end of 2026. The gain on these options is currently almost NIS 30 million, or NIS 1.2 million on average per employee.
Alongside the employees, three senior managers, CFO Alex Lavie, VP Engineering Liran Reller, and COO Yuval Evron, have received generous allocations of options exercisable within a few months with a high gain. On the basis of the current share price, the three have made an aggregate NIS 10.4 million on the previous allocation and another NIS 8.8 million on the allocation at the beginning of this year (which they will be able to exercise only from the end of 2026).
Accession to the Tel Aviv 35 Index
The large gains made by the company’s staff and management are of course attributable to the meteoric rise in NextVision’s share price. In the past year, it has jumped by more than 260%, giving a rise of 2,874% since the flotation in 2021, bringing the company, as mentioned, to a market cap of NIS 13.6 billion.
This means that, unless there is some extraordinary last-minute change, NextVision’s stock will join the prestigious Tel Aviv 35 Index list at the next revision of the stock market indices in early November.
NextVision has not said exactly what the NIS 1.4 billion proceeds of its offering will be used for, but only that the cash will finance “strategic growth initiatives,” including possible acquisitions, and investment in R&D.
Published by Globes, Israel business news – en.globes.co.il – on September 30, 2025.
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