Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 184

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 5
Chunk 184
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 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 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.

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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