Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 216

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 216
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 officers’ liability insurance policy.
 
Equity Incentive Plans
 
In 2013, the Company adopted a share incentive plan for its directors, officers, employees and its subsidiaries’ employees (the “2013 Plan”). In accordance with our compensation policy, the aggregate amount of outstanding equity-based compensation awarded by the Company at any time shall not exceed 10% of the fully-diluted share capital of the Company, as calculated at the time of grant (which fully-diluted share capital will be calculated pro-forma after taking into account the proposed grants and shares underlying all outstanding equity-based awards).
 
As of December 31, 2024, we had a total of approximately 1.41 million outstanding RSUs and PSUs which were awarded to our directors and Covered Officers under the 2013 Plan, of which approximately 0.70 million to our chief executive officer and approximately 0.015 million to the chairman of our board of directors.
 
At our 2024 annual general meeting, our shareholders approved, following the approval and recommendation of the Compensation Committee and Board of Directors, the award of the following equity grants to our chief executive officer: (a) an annual equity grant in the value of approximately $8.0 million, comprised of 40% time-based vesting RSUs and 60% PSUs (referred to as the “Base PSUs”); (b) additional equity grants in the form of additional PSUs (referred to as “Upside PSUs”), as follows: (i) Upside PSUs with a value of approximately $2.4 million (referred to as the “Upside PSUs Type 1”); and (ii) Upside PSUs with a value of approximately $1.6 million (referred to as the “Upside PSUs Type 2”). The time-based vesting RSUs vest over a three-year period, such that one-third shall vest at the end of each year over a three-year period from the date of grant. The vesting of the Base PSUs was subject to the attainment of certain pre-defined financial performance metrics of net profit and cash from operations for the year ended December 31, 2024, as determined by the Compensation Committee and Board of Directors, weighted equally. The actual number of Base PSUs earned (subject to time-based vesting, as described below) was based on the Company’s performance relative to the pre-defined 2024 performance measures, and if the 2024 performance measures