Talent Attraction & Retention
Appraisal
The performance appraisals are conducted twice a year, at mid-year and year-end. Employees are evaluated by performance given a grade between A to E. The performance grade is linked to remuneration structure of employees and their compliance with codes of conduct. Such performance appraisal will affect the amount of rewards, bonus, and salary adjustment. Those receiving an E in the evaluation will be dismissed. Those receiving a D will receive no salary raise. In addition, the supervisor must interview these employees and submit a performance improvement plan. Supervisors are expected to monitor the performance of their subordinates on an ongoing basis and engage in periodic communication and discussions to assist them in achieving their performance goals. If an employee has concerns about the evaluation results, they can communicate their feedback through the administrative system. In 2024, 659 received A and none received E.
| Type | Description | Frequency |
|---|---|---|
|
The performance appraisal (Management by objectives) |
Based on operation and development strategies, each department sets their departmental KPIs in line with their business characteristics and operational objectives. Employees set their KPIs according to departmental KPIs. The performance appraisals are conducted twice a year, at mid-year and year-end. Employees are evaluated by performance given a grade between A to E. The performance grade is linked to remuneration structure of employees and their compliance with codes of conduct. Such performance appraisal will affect the amount of rewards, bonus, and salary adjustment. |
Twice a year |
| Multidimensional performance appraisal | The performance appraisal of CSC's employees is not limited to a single source. For example, employees in the general affairs, procurement, and information technology departments receive performance feedback not only from supervisors but also from internal and external customers. | On going |
| Team-based performance appraisal | The employees receive the production and sales surplus bonuses that will be issued when there is a surplus in the month depending on their team-based performance factor and their own salary factor. | Monthly |
| Agile conversation | Supervisors are expected to monitor the performance of their subordinates on an ongoing basis and engage in periodic communication and discussions to assist them in achieving their performance goals. | Ongoing |
| Event | 2022 | 2023 | 2024 |
|---|---|---|---|
| Numbers of employees evaluated at the end of the year | 9,350 | 9,459 | 9,530 |
| Numbers of employees with an A (the best) appraisal result | 709 | 705 | 659 |
| Ratios of employees evaluated | 7.58% | 7.45% | 6.90% |
| Numbers of employees with an E (the worst) appraisal result | 0 | 0 | 0 |
Payroll Management
Employee remuneration includes the basic salary, i.e., the base salary, meal allowances, and allowances for special work environments or special maintenance, year-end bonuses, and production/sales profit bonuses. Employees are remunerated based on their duty, current market wage standards, and CSC's financial status and organizational structure. Pay is determined without gender-based differences, and the basic salary paid to women and men of the same position and level is the same. However, since salary is related to seniority, the pay ratios of the same position may vary due to differences in seniority and individual performance. For employees of the same position with the same seniority, the pay is the same regardless of the gender. In 2024, the average remuneration of regular full-time employees in non-managerial positions is NT$1.288 million, and the median is NT$1.215 million.
| Item | 2022 | 2023 | 2024 |
|---|---|---|---|
| Annual total compensation for the organization's highest paid-individual / Median annual total compensation for all of the organization's employees excluding the highest-paid individual | 6.7%~10% | 4.3%~8.6% | 4.1%~8.2% |
| Percentage increase in annual total compensation for the organization's highest-paid individual / Median percentage increase in annual total compensation for all of the organization's employees excluding the highest-paid individual | -1.0%~-1.5% | -2.2~-2.5% | 0% |
Pay-ratio by employee level
| 2024 Pay-ratio by employee level | ||||||
|---|---|---|---|---|---|---|
| Gender | Female | Male | ||||
| Employee Level | Average Pay-ratio |
Average seniority(year) |
Average Pay-ratio |
Average seniority(year) |
||
| Executive level (base salary only) | Note 1 | 34 | ||||
| Executive level (base salary + other cash incentives) | ||||||
| Management level (base salary only) | 1 | 14 | 0.96 | 17 | ||
| Management level (base salary + other cash incentives) | 1 | 0.94 | ||||
| Non-management level (base salary only) | 1 | 9 | 1.02 | 14 | ||
- Note 1: There were no female served as executive level in 2024, hence the pay-ratio is not applicable.
- Note 2: The data above coverages 100% of FTEs.
| Compensation Comparison between CEO and employees in 2024 | ||
|---|---|---|
| Total annual compensation of the CEO (A) | NT$7,500,000 (Note 1) | |
| Annual employee (CEO excluded) compensation | Median (B) | Mean (C) |
| NT$1,215,000 (Note 2) | NT$1,288,000 (Note 2) | |
| Ratio between the total annual compensation of the CEO and the mean or median employee compensation(A)/(B), (A)/(C) | 6.17 | 5.82 |
- Note 1: According CSC's 2024 annual report (P.31), the CEO's annual compensation is between NT$5,000,000 (inclusive) and NT$10,000,000 (not inclusive), hence take the average of the aforementioned range (NT$7,500,000) as the CEO's annual compensation.
- Note 2: According to the data provided by Taiwan Stock Exchange (Corporate Governance>Information related to ESG>Information relating to employee benefits and compensations>Information about salary of full-time employees who are not in a managerial position>Market: Listed Companies, Industry: Iron and Steel, Year: 2024), the median and mean annual compensation of all employees of CSC in 2024 is NT$1,215,000 and NT$1,288,000 respectively.
Remuneration for New Recruits
Pay standards of new recruits are determined with reference to the supply and demand of workforce and remuneration standards on the market. The pay is to be superior to the basic salary/wage specified in the Labor Standards Act and according to the duty, education backgrounds, working experiences in related fields, market manpower demand, and the pay of current CSC employees holding the same positions and with equivalent seniority. In 2024, the starting salary of entry-level employees is NT$32,100, and that of professional-level employees is NT$42,600. Salaries will be adjusted after three months based on the employees' past work experience and evaluation.
Pay Raises Based on the Annual Evaluation of Job Performance
For about seven to twelve years after entering CSC and depending on the levels and individual performance, the salary adjustment opportunity is available every year. The range of salary increases is highly correlated with performance, and the adjustment rate is between 1% and 8%. Moreover, CSC will also carry out annual salary adjustments according to market salary dynamics and operating conditions. There was an average increase of 3.17% in the past twelve years.
| Event | 2022 | 2023 | 2024 |
|---|---|---|---|
| The average percentages of annual pay raises for regular employees | 4.5% | 3.5% | 4.0% |
Executive committee members’ remuneration and clawback policy
The remuneration of executive committee members, including the CEO, is directly linked to the performance of corporate management. This remuneration is split into fixed and variable components, with the variable part being determined by considering indicators like ROE, ROA, ESG implementation, risk management, and other criteria.
The bonuses and compensation for the executive committee members of CSC are disbursed in cash. In order to safeguard corporate goodwill and maintain effective internal control, CSC‘s Rewards and Penalties Regulation states that if any employee, including the CEO and other executive committee members, found engaging in certain violation will have their approved annual bonus and retained bonuses clawed back in accordance with relevant regulations.
If there is a serious breach of the labor contract, work regulations, or a significant decline in job performance, such retained bonuses will not be paid.
Sustainable Performance Incentives
Each material issue is one of the important KPIof the Vice President and First Echelon Supervisor of the relevant department.KPI is the basis for executives' year-end performance evaluation. KPI evaluation results involve their bonuses and salary adjustments, including but not limited to the following items:
| Position | KPIs |
|---|---|
| Chief Operating Officer
(Vice President of the operating department) |
Carbon intensity |
| Business Unit Managers
(First Echelon Supervisors of the related department ) |
Carbon intensity,power-saving rate |
Bonuses and Other Incentives
- Production and sales surplus bonuses:Bonuses will be issued when there is a surplus in the month. The average full bonus for the whole year is 3.6 months' salary.
- Incentive bonuses:Bonuses will be allocated when there is a surplus in the annual closing. The amount of an individual's bonus is related to the appraisal level of his/her performance. The multiple differences between different appraisal levels in performance are between 0.5 and 1.25 times.
- Year-end bonuses:One month's basic salary will be given as a year-end bonus and paid in proportion to the actual number of working days that year.
- Employee remuneration:If CSC makes a profit in the annual year-end closing, employee remuneration should be allocated. However, if there are still accumulated losses, the compensation amount should be reserved in advance.
-
Long-Term Incentives for Employees：
1. Greenhouse Gas Reduction Incentives:
CSC has established a program to encourage employees to participate in carbon reduction activities. When the total emission or emission intensity targets are achieved consecutively for three years, all employees within the related departments will be entitled to receive monetary awards (deferred cash bonuses).
2. Patent Rights Incentive System:
CSC has implemented a special incentive system to recognize employees who contribute to profitable improvements by assigning their patent rights to the company. This system operates on a long-term basis, considering the time and effort needed for patents to be implemented. Employees will receive a portion of the patent royalties in cash, based on their level of contribution, once the patents are implemented and generate benefits.
