Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 219

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 219
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 the performance price is met during the third year following the Board Approval, two-thirds of the award will vest immediately and the remaining one-third will vest on the third anniversary of the Board Approval, subject the chief executive officer’s continued employment through each such vesting date.  If the performance price is met during the fourth or fifth year following the Board Approval, the entire award will immediately fully vest.
 

Our compensation policy includes minimum shareholding guidelines (the “Minimum Holding”) pursuant to which: (i) the chief executive officer is required to own ordinary shares with a minimum value that equals at least three times his annual base salary, commencing May 2024; and (ii) the directors and other executive officers are required to own ordinary shares with a minimum value that equals at least 50% of their respective annual fee or annual base salary, as applicable, commencing July 2025. The chief executive officer and the other officers and directors have, five years from the date our board of directors approved their respective Minimum Holding to attain said Minimum Holding.  During such period and until they accumulate the applicable Minimum Holding, he/she must retain at least 20% of the shares issued upon the vesting of time-based vesting RSUs granted to him/her during such period.  As of December 31, 2024, our chief executive officer is in compliance with the applicable Minimum Holding requirement.
 
For further information concerning our employee equity plans and outstanding employee equity, see Note 14B to the consolidated financial statements included in this annual report.
 
C. BOARD PRACTICES
 
 Board of Directors
 
Our Articles of Association provide that the Board of Directors shall consist of at least five and no more than 11 members. Our Board of Directors is currently comprised of 11 directors. Our directors are elected by our shareholders by the vote of a majority of the ordinary shares present, in person or by proxy, and voting at that meeting. Generally, our directors hold office until their successors are elected at the next annual general meeting of shareholders (or until any of their earlier resignation or removal in accordance with the Companies Law). In addition, our Articles of Association allow our board of directors to appoint directors (other than the external directors) to fill vacancies on our board of directors, until the next annual general meeting of shareholders.
External Directors
 
The Companies Law requires Israeli companies with shares that have been offered to the public in or outside of Israel to appoint at least two external directors. However, pursuant to the Companies Regulations (Relief for Companies Whose