Tower Semiconductor’s stock keeps setting records, lifting its market value above several major Israeli names in the past week. On Monday it crossed $300 a share and closed at a market capitalization of $37.7 billion, briefly overtaking Bank Hapoalim and Bank Leumi, as well as Elbit Systems and Teva. In after-hours trading, however, the stock fell more than 7%, and by Tuesday morning in Tel Aviv it was still behind Teva and Elbit.
The company’s shares have surged 690% in dollar terms over the past year, adding more than $33 billion to its market value. The rally has come amid strong momentum in the chip sector, driven by massive investment in AI infrastructure, and because Tower itself is considered an AI-related player.
Against that backdrop, Tower’s board is asking shareholders to approve an update to the company’s compensation policy at the annual meeting scheduled for July 2. The vote, which is required every three years under Israeli law, will also cover a pay update for CEO Russell Ellwanger. The company said it is publishing a new letter from Chairman Amir Elstein after feedback from one of the advisory firms used by institutional investors.
Under the proposal, Ellwanger’s annual salary would rise 5% to about $1.08 million if shareholders approve it. His maximum bonus would increase from 175% of annual salary to 225%, or roughly $2.4 million, which Tower says is below the median in its peer group. His maximum equity award would rise from up to 10 times salary to up to 13 times salary, or about $14 million. Other senior executives could receive equity awards of up to seven times annual salary, compared with five times before.
Elstein wrote that the policy is meant to support long-term goals, align incentives with company strategy, and help Tower continue attracting and retaining talent. He said Tower has changed significantly since the current policy was approved in 2023, adding that the company’s market value has risen sevenfold thanks to strong performance and management leadership.
