Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 186

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 186
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etermined corporate measurable metrics component of the annual bonus
will be awarded, and a portion of the annual bonus is based on performance evaluation, in accordance with our compensation policy and
subject to applicable law. The bonus cost gross amounts paid by the Company for the compensation of the Covered Officers A, B, C, D and
E during the year ended December 31, 2024, amounted to $1.65 million, $0.54 million, $0.47 million, $0.41 million and $0.25 million,
respectively.

Equity based compensation for directors and officers is intended
to be in the form of restricted share units (“ RSUs”), performance-based stock units (“ PSUs), options and/or other equity
forms, in accordance with our equity-based compensation policies and programs in place from time to time and in accordance with our compensation
policy. Equity-based compensation may be granted as an annual grant and/or from time to time, and is individually determined. Generally,
equity awards shall not begin to vest before the end of the first year from the date of grant. We calculate the fair market value of equity-based
compensation for officers and directors at the time of grant according to the Black-Scholes model, binomial model or any other best practice
or commonly accepted equity-based compensation valuation model, when such award is duly approved in accordance with applicable law and
amortize such value in our statements of operations over the applicable vesting schedule. Total value of equity-based compensation
awarded to the Covered Officers A, B, C, D and E and recorded for the year ended December 31, 2024 (calculated based on the total
amortization cost recorded in the Company’s statement of operations for the year ended December 31, 2024 with respect to all equity-based
grants awarded to the applicable Covered Officer), amounted to $9.50 million, $2.97 million, $2.39 million, $1.96 million and $1.44 million,
respectively.

Under our compensation policy, we may grant our executive officers
certain termination and retirement payments, including change of control-related compensation, contingent upon the termination of employment
or resignation of the officer under certain circumstances as specified in such change of control provision, and subject to obtaining the
applicable corporate approvals as required by law. In accordance with our compensation policy and the employment terms of our chief executive
officer, upon termination of his employment, including upon a change of