Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 183

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 183
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 in July 2024, serves
as the basis for decisions concerning the financial terms of employment or engagement of our office holders (within the meaning of the
Companies Law), including cash compensation, equity-based awards, indemnification and insurance, severance and other benefits. Our compensation
policy is performance-based and is designed to align our officers’ and directors’ interests with those of our company and
shareholders in order to enhance shareholder value. Our compensation policy allows us to provide incentives to senior management that
reflect short-term, mid-term and long-term goals and performance, as well as motivate the achievement of company targets, while providing
compensation that is competitive in the global marketplace in which we recruit our senior management.

As an Israeli company with a significant global footprint, we aim
to adopt compensation policies and procedures that align with global companies of similar complexity, including companies in our industry
and other companies which compete with us for similar talent.

Under the Companies Law, a company’s compensation policy
must be determined and later reevaluated according to certain factors, 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