Company: ENTXW
Filing Date: 2025-05-14
Form Type: PRE 14A
Source: 0001178913-25-001794
Chunk: 70

Company: Entera Bio Ltd.
Filing Date: 2025-05-14
Form: PRE 14A
Chunk 70
---
PROVAL OF AN AMENDED AND RESTATED COMPENSATION POLICY |

Background Pursuant to the Israeli Companies Law, all Israeli companies, such as the Company, whose shares are publicly listed, are required to adopt a written compensation policy for their executives, which addresses certain items prescribed by the Israeli Companies Law and serves as a flexible framework for executive and director compensation. Accordingly, on July 31, 2024, the Company’s shareholders approved the compensation policy for the Company’s directors and officers. The compensation policy must further be approved once every three years by the Board, after it considers the recommendations of the Compensation Committee, and then by a Special Majority of the shareholders, to the extent applicable, in accordance with the provisions of the Israeli Companies Law. To the extent a compensation policy is not approved by the shareholders, then generally, following re-discussion of the matter, the Compensation Committee and the Board may nonetheless approve the compensation policy based on detailed reasoning, provided such approval is in the Company’s best interest. Revisions to the compensation policy require the same approval process, unless otherwise provided by applicable Israeli law. We note that this approval vote of the compensation policy is due to Israeli law requirements and in addition to and not in lieu of the advisory “say-on-pay” vote contained in Proposal Six. We adopted a compensation policy on September 27, 2018. On October 4, 2021, and again on July 31, 2024, the Company’s shareholders approved amendments at the Company’s 2021 and 2024 annual meeting of shareholders, respectively, in order to create a relevant and appropriate compensation framework to meet the Company’s needs and in accordance with Israeli law requirements. Pursuant to our compensation policy, the compensation that may be granted to an executive officer may include: base salary; cash bonuses; and equity-based compensation. The cash bonus component aims to ensure that the Company’s executive officers are incentivized to reach the Company’s annual goals. The equity-based compensation component is intended to incentivize and reward for future long-term performance, to foster a long-term link between executive officers’ interests and the interests of the Company and its shareholders, and to attract, motivate and retain executive officers for the long term. Our compensation policy also provides for compensation to the members of our Board in accordance with the principles determined in our compensation policy. Unlike “say-on-pay,” which is a retrospective shareholder advisory vote based on actual executive compensation granted in the previous year, the compensation policy serves as a shareholder-approved prospective framework for the Compensation