Tower seeks to lift CEO Ellwanger’s compensation
Tower Semiconductor’s (TASE: TSEM; Nasdaq: TSEM) share worth continues to climb, and prior to now week the corporate’s market cap has surpassed these of Israel’s two main banks, Leumi and Hapoalim, in addition to of protection firm Elbit Techniques and Teva Pharmaceutical Industries in New York.
At this week’s opening on Wall Avenue, Tower Semiconductor inventory rose above $300, and it closed yesterday at $318.65, giving the corporate a market cap of $37.7 billion, whereas Teva stands at $37.5 billion and Elbit Techniques at $36.3 billion. In after-hours buying and selling, nevertheless, Tower fell by greater than 7%, and on the Tel Aviv Inventory Change this morning it was nonetheless behind Teva and Elbit Techniques.
In greenback phrases, Tíwer Semiconductor’s share worth has risen 690% inside a 12 months, and the corporate has added over $33 billion to its market cap. The background is the optimistic momentum within the semiconductor sector due to large funding in AI infrastructure, Tower itself being a participant within the AI market.
The sharp rise within the firm’s worth is likely one of the principal causes that the Tower board cites in a letter to shareholders calling on them to approve a revision of the corporate’s compensation coverage on the subsequent shareholders assembly. Tower has referred to as a gathering for July 2, at which the compensation coverage shall be put to the vote (as required by Israeli regulation each three years), along with an improve of the compensation of CEO Russell Ellwanger.
Apparently following suggestions from one of many consultants that advises monetary establishments on votes at shareholders conferences, Tower Semiconductor is now publishing the letter from the chairperson and including particulars. Below the corporate’s proposal, topic to approval by the shareholders, Ellwanger’s annual wage will rise by 5% to $1.08 million. As well as, the modifications to the compensation coverage embody an uplift to the utmost annual bonus (on the premise of assembly targets) for Ellwanger from 175% of his annual wage to 225%, i.e., $2.4 million. Tower states that that is decrease than the median within the peer group. One other change is a rise in Ellwanger’s most stock-based compensation from ten instances his wage to 13 instances, i.e., $14 million. Different senior executives within the firm will be capable to obtain stock-based compensation of as much as seven instances their annual salaries, which compares with 5 instances beforehand.
In his letter, Tower chairperson Amir Elstein states, “The compensation coverage ought to promote the corporate’s goals… from a long-term perspective and create appropriate incentives for firm officers… Contemplating the numerous optimistic modifications in our enterprise path since adoption of the present compensation coverage, along with our strategic plan for the following three years, the proposed compensation coverage is designed to help progress and replicate the corporate’s aspirations and the competitors… the amendments are meant to make sure that Tower will be capable to proceed to draw, retain, and encourage the required expertise that can help the corporate’s continued progress and creation of worth for the shareholders, because the rise in worth signifies.”
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Elstein provides that when the present coverage was accredited n 2023, Tower was significantly smaller than it’s at the moment. “Since then, Tower’s enterprise has very a lot strengthened and its market cap has risen seven-fold, due to sturdy efficiency and the administration’s management,” he writes, and stresses that the proposed coverage creates rewards on the premise of efficiency.
Printed by Globes, Israel enterprise information – en.globes.co.il – on June 23, 2026.
© Copyright of Globes Writer Itonut (1983) Ltd., 2026.
