Long term capital gains are taxed at half the rate of income. So yes, share based compensation is a way to reduce taxes. There is also a line of thinking that having the leadership’s compensation tied to the stock’s performance helps align the interests of shareholders and management.
The initial push into the land is often funded by their agricultural ministry. Settlers force Palestinians off their land (with IDF support) to put their own sheep/goats out to pasture. The WSJ had a video earlier this year where they interview settlers and they show the reporters explicitly how they are receiving funding from the ministry. The rest of the funds come from private American donors who enthusiastically support the illegal annexations.