Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 84

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 3
Chunk 84
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, including: the advancement of the company’s objectives, business
plan and long-term strategy; the creation of appropriate incentives for office holders, while considering, among other things, the company’s
risk management policy; the size and the nature of the company’s operations; and with respect to variable compensation, the contribution
of the office holder towards the achievement of the company’s long-term goals and the maximization of its profits, all with a long-term
objective and according to the position of the office holder. The compensation policy must furthermore consider the following additional
factors:

  the education, skills, expertise and achievements of the relevant office holder;  

  the role and responsibilities of the office holder, and prior compensation arrangements with the office holder;  

  the ratio of the cost of the terms of employment of an office holder to the cost of compensation of the other employees of the company        

  with respect to variable compensation, the possibility of reducing variable compensation at the discretion of the board of directors,  

  with respect to severance compensation, the period of employment or service of the office holder, the terms of his or her compensation  

In addition, under the Companies Law, a company’s compensation
policy must also include the following features: (i) with respect to variable components of the compensation of the chief executive officer,
determining the variable compensation components on long term performance and measurable metrics; however, an immaterial portion of the
variable components of the compensation of the chief executive officer, in the amount of up to three monthly salaries per annum, can be
discretion-based awards (i. e., not based on measurable metrics), taking into account the contribution of the chief executive officer to
the company. This requirement applies also to any other office holder (within the meaning of the Companies Law) who is not subordinate
to the chief executive officer, if any (such as directors, including the chairman of the board of directors); (ii) the ratio of variable
components and fixed components and a cap on variable components at the time of their payment, except that the cap for equity-based compensation
is determined at the time of grant; (iii) the conditions under which an office holder would be required to return compensation paid, in
the event that it is later revealed that such amounts were paid on the basis of data that was inaccurate and was required to be restated
in the company’s financial statements; (iv) the minimum holding or vesting periods for equity-based variable components of compensation,
while taking into consideration