Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 211

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 211
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 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;
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•   the role and responsibilities of the office holder, and prior compensation arrangements with the office holder;
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•      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   
    (including any employees employed through manpower companies), specifically to the cost of the average and median salaries of such employees
                               and the impact of the disparities between them upon work relationships in the company;                           
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•   with respect to variable compensation, the possibility of reducing variable compensation at the discretion of the board of directors,
               and the possibility of setting a limit on the exercise value of non-cash variable equity-based compensation; and          
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•   with respect to severance compensation, the period of employment or service of the office holder, the terms of his or her compensation
        during such period, the company’s performance during such period, the person’s contribution towards the company’s achievement     
            of its goals and the maximization of its profits, and the circumstances under which the person is leaving the company.        
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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