Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 85

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 85
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 long term incentives; and (v) maximum limits on grants or benefits paid upon termination.

53

Compensation under our compensation policy may include: base salary;
benefits and perquisites; performance-based cash bonuses and other bonuses (such as special bonuses for substantial achievements and sign-on
bonuses); equity-based compensation; and retirement, termination and other arrangements. Our compensation policy aims to optimize the
mix of fixed compensation and variable compensation in order to (among other things) appropriately incentivize office holders to meet
our goals while considering our management of business risks and sets maximum ratios between the two types of compensation elements.

All compensation arrangements of officers and directors are required
to be approved in the manner prescribed by applicable law (see details in Exhibit 2.1 to this annual report).

For the year ended December 31, 2024, we paid to all our directors
and senior management whose names are specified in Item 6A and who served during the period, as a group, an aggregate of $6.73 million
in salaries, fees, payments upon termination and bonuses (excluding employer cost, relocation related expenses and equity-based compensation,
which are detailed below). In addition, the total employer cost for personal vehicles, relocation related expenses, amounts set aside
or accrued to provide for insurance, severance, retirement, vacation and similar benefits or expenses for such persons was approximately
$1.26 million for the year ended December 31, 2024.

The following is a summary of the cost to the Company, including
non-cash cost to the Company following the issuance of equity vehicles, as well as the Company’s required payments to tax authorities,
social security and financial institutions (e. g pension and other institutions and funds), in connection with the terms of employment
of our five most highly compensated officers and/or directors for the year ended December 31, 2024, which consist of the individuals
listed as A, B, C, D and E in the table set forth in Item 6A above (collectively referred to herein as the “ Covered Officers”).

The base salary of our executive officers is individually determined
according to past performance, educational background, country of residence, professional experience, qualifications, specializations,
role, business responsibilities, achievements of the officer and prior salary and compensation arrangements, as well as comparative peer
group analyses and our compensation policy. Base salary cost gross recorded by the Company for the compensation of Covered Officers A,
B, C, D and E for the year ended December