Tower seeks to raise CEO Ellwanger’s compensation

Tower Semiconductor’s (TASE: TSEM; Nasdaq: TSEM) share price continues to climb, and in the past week the company’s market cap has surpassed those of Israel’s two major banks, Leumi and Hapoalim, as well as of defense company Elbit Systems and Teva Pharmaceutical Industries in New York.

At this week’s opening on Wall Street, Tower Semiconductor stock rose above $300, and it closed yesterday at $318.65, giving the company a market cap of $37.7 billion, while Teva stands at $37.5 billion and Elbit Systems at $36.3 billion. In after-hours trading, however, Tower fell by more than 7%, and on the Tel Aviv Stock Exchange this morning it was still behind Teva and Elbit Systems.

In dollar terms, Tíwer Semiconductor’s share price has risen 690% within a year, and the company has added over $33 billion to its market cap. The background is the positive momentum in the semiconductor sector because of huge investment in AI infrastructure, Tower itself being a player in the AI market.

The sharp rise in the company’s value is one of the main reasons that the Tower board cites in a letter to shareholders calling on them to approve a revision of the company’s compensation policy at the next shareholders meeting. Tower has called a meeting for July 2, at which the compensation policy will be put to the vote (as required by Israeli law every three years), together with an upgrade of the compensation of CEO Russell Ellwanger.

Apparently following feedback from one of the consultants that advises financial institutions on votes at shareholders meetings, Tower Semiconductor is now publishing the letter from the chairperson and adding details. Under the company’s proposal, subject to approval by the shareholders, Ellwanger’s annual salary will rise by 5% to $1.08 million. In addition, the changes to the compensation policy include an uplift to the maximum annual bonus (on the basis of meeting targets) for Ellwanger from 175% of his annual salary to 225%, i.e., $2.4 million. Tower states that this is lower than the median in the peer group. Another change is an increase in Ellwanger’s maximum stock-based compensation from ten times his salary to thirteen times, i.e., $14 million. Other senior executives in the company will be able to receive stock-based compensation of up to seven times their annual salaries, which compares with five times previously.

In his letter, Tower chairperson Amir Elstein states, “The compensation policy should promote the company’s aims… from a long-term point of view and create suitable incentives for company officers… Considering the significant positive changes in our business path since adoption of the current compensation policy, together with our strategic plan for the next three years, the proposed compensation policy is designed to support growth and reflect the company’s aspirations and the competition… the amendments are intended to ensure that Tower will be able to continue to attract, retain, and motivate the required talent that will support the company’s continued growth and creation of value for the shareholders, as the rise in value indicates.”

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Elstein adds that when the current policy was approved n 2023, Tower was considerably smaller than it is today. “Since then, Tower’s business has very much strengthened and its market cap has risen seven-fold, thanks to strong performance and the management’s leadership,” he writes, and stresses that the proposed policy creates rewards on the basis of performance.

Published by Globes, Israel business news – en.globes.co.il – on June 23, 2026.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2026.