Policy Linking Executive Remuneration with Sustainability Performance
In accordance with the "Regulations Governing the Remuneration of Directors and Managers" and the "Regulations Governing Performance Evaluation," the Company establishes performance appraisals as the basis for executive compensation. Evaluation criteria primarily encompass two major indicators:
Financial Indicators:
Based on the Company's consolidated financial income statements, allocations are made according to each business group/department's contribution to overall corporate profitability, while referencing budget achievement rates and revenue growth rates as the basis for compensation disbursement.
Non-Financial Indicators:
Managers undergo periodic annual performance appraisals covering individual goal achievements, practice of corporate culture and core values, managerial competency, as well as execution of sustainability strategies across Environmental, Social, and Governance (ESG) dimensions, serving as the basis for compensation disbursement.
Shouldering the mission of sustainable development and fulfilling international corporate citizenship responsibilities, the Remuneration Committee resolved to incorporate specific climate-related sustainability targets into the annual performance goals of senior executives (Vice Presidents and above). Upon target achievement, bonus points for special achievement/contribution are added to the annual appraisal score, linking compensation to reinforce the strategic priority of sustainability.
| Key Performance Indicators | Compensation Linkage |
|---|---|
| 1. Energy management usage annual reduction target:3% |
Achieving a single indicator adds 2 points to total performance score.
Achieving all indicators adds up to a maximum of 10 bonus points.
The performance score serves as weighting for current-year bonus allocation, subsequent salary adjustments, and related benefits.
|
| 2. Greenhouse gas (GHG) reduction annual target:4.2% | |
| 3. Water management annual reduction target:3% | |
| 4. Waste management annual reduction target:3% |