Company: TSEM
Filing Date: 2025-04-30
Form Type: 20-F
Source: 0001178913-25-001537
Chunk: 217

Company: TOWER SEMICONDUCTOR LTD
Filing Date: 2025-04-30
Form: 20-F
Item: Item 6
Chunk 217
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 are met, the Base PSUs that are earned vest over a three year period, such that one third of the earned Base PSUs vest at the end of each year from the date of grant. The vesting of the Upside PSUs Type 1 was conditioned upon the Company’s actual financial performance in 2024 exceeding the pre-defined 2024 financial performance metrics for the vesting of the Base RSUs. Subject to meeting such condition, the Upside PSUs Type 1 earned shall be in proportion to the degree by which the pre-defined 2024 financial performance targets are exceeded in relation to a certain target percentage that was pre-defined by the Compensation Committee and Board of Directors, and such portion of Upside PSUs Type 1 earned, vests over the three-year time-vesting schedule as detailed above for the Base PSUs. The vesting of the Upside PSUs Type 2 was conditioned upon the attainment of three pre-defined performance measures, as follows: (i) meeting two share price performance measures within one year of the Board approval of the grant of the Upside PSUs Type 2; and (ii) the Company’s actual financial performance in 2024 meeting or exceeding the pre-defined 2024 financial performance metrics for the vesting of the Base PSUs by certain pre-defined threshold targets, as determined by the Compensation Committee and Board of Directors. Subject to meeting these three conditions, all of the Upside PSUs Type 2 are earned, and if earned, vest over the three-year time-vesting schedule as detailed above for the Base PSUs.
 

Actual net profit for 2024 was $207.9 million and cash from operations for 2024 was $448.7 million. Since these 2024 actual financial results exceeded the pre-defined financial performance metrics for the vesting of the Base PSUs and Upside PSUs Type 1, the chief executive officer is entitled to all of the Base and Upside PSUs Type 1, which continue to be subject to the three-year-time-vesting schedule described above.  In addition, as the three conditions for the vesting of the Upside PSUs Type 2 detailed above were attained, the chief executive officer is entitled to all of the Upside PSUs Type 2, which continue to be subject to the three-year-time-vesting schedule described above. Accordingly, in accordance with the above referenced shareholder approval, we granted to the chief executive officer 78,366 RSUs, 117,