Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 212

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 212
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 holding or vesting periods for equity-based variable components of compensation, while taking into consideration long term incentives; and (v) maximum limits on grants or benefits paid upon termination.
 

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