Company: ENTXW
Filing Date: 2025-05-14
Form Type: PRE 14A
Source: 0001178913-25-001794
Chunk: 71

Company: Entera Bio Ltd.
Filing Date: 2025-05-14
Form: PRE 14A
Chunk 71
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 Committee and the Board when making compensation decisions generally for the following three-year period, which sets caps and other limitations. The Compensation Committee and the Board generally cannot approve any compensation that does not fall within the framework of the Company’s compensation policy without seeking shareholder approval. Therefore, and in light of our previous experience, we believe that our compensation policy must provide flexibility to address our various needs and challenges, including special circumstances that may arise during the applicable three-year period. The compensation elements, caps and other limitations set forth in the compensation policy do not create an obligation or a promise to actually grant such compensation. The actual executive compensation design and amounts granted to our Named Executive Officers in the previous year are reflected in the section entitled “Executive Compensation” included in this proxy statement and presented for a shareholder advisory vote under Proposal Six. As noted above, under the Israeli Companies Law, we are required to submit the compensation policy to our shareholders at least once every three years for approval. Although the compensation policy was last approved in 2024, we are presenting to our shareholders a proposal to approve our Amended Compensation Policy, a form of which is attached to this proxy statement as Appendix A and which is substantially similar to our existing compensation policy subject to certain updated thresholds to align with market standards and to attract prospective management members such that the policy would be effective for the next three years, or such longer period as permitted and in accordance with the Israeli Companies Law. 42 Our existing compensation policy reflects our unique status, being subject to both Israeli compensation policy requirements and U.S. compensation disclosure and “say-on-pay” requirements as well as providing us with a competitive compensation framework. The Compensation Committee and the Board have determined that in order to attract and retain leading candidates to management positions in the Company, it would be advisable for the Company to adjust certain thresholds in its existing compensation policy in order to better reflect the terms being offered by companies in a similar sector and of similar size to the Company. The changes would allow the Company to attract and retain highly-qualified executive officers while aligning their compensation terms with Company resources and needs. The 2025 comparative executive compensation benchmark analysis found that the compensation terms of our executive officers are materially below that of similar companies within the market. The update in compensation terms is therefore critical to provide for a policy in line with comparable compensation standards, to ensure effective retention of existing management and the attraction of new leading candidates when needed. Based on our positive experience in implementing the existing compensation policy over the past three years, the Board recommends the approval of the Am