Senior Executive Remuneration

  • Composition and Operations of the Board of Directors
  • Senior Executive Remuneration
Senior Executive Remuneration
  • Senior Executive Remuneration System

The remuneration for the President and Vice President (senior executives) of SinoPac Holdings is based on their individual professional qualifications and experience and the prevailing rates in the industry, discussed in the remuneration committee, and then submitted to the Board of Directors for approval. In addition to the fixed monthly base salary and allowances, the Company issues performance bonuses and long-term incentives according to the Company's rules with consideration of the overall annual business performance, personal performance, and future risks in the medium to long-term strategy of SinoPac Holdings. The performance evaluation period for the variable remuneration ofthe President is 3 years and the total lock-up period is 5 years.

  • Long-Term Performance Alignment

Tobalance short-term and long-term remuneration, business performance and personal performance, and cash and non-cash remuneration, SinoPac Holdings established the Long-Term Performance Alignment Program and designed the deferral of the performance bonus with a vesting period for variable compensation of up to 5 years. The proportion of President and Vice President’s (senior executives) long-term incentive deferral is equivalent to more than 20% of the performance bonus, which is deferred by way of virtual shares and employee stock ownership connected to the value of the shares of SinoPac Holdings, so that the remuneration of managers is closely connected to the short-term business performance and long-term development of SinoPac Holdings. The conditions for unlocking medium to long-term incentives in the trust scheme include the financial performance of SinoPac Holdings and its subsidiaries (including but not limited to the ROE), effectiveness of the implementation of long-term strategies, TSR shareholder value and risk management, and corporate governance targets in the next 3 years. They connect managers' obligations and responsibilities to long-term performance.

  • Clawback Policy

Where a manager violates laws or professional ethics, or commits acts of negligence or dereliction of duties, or engage in inappropriate conduct that causes businesses risks and damages the Company's interests or reputation, the Company may adjust the distribution ratio or implement a trigger claw back provision of distributed incentives.