Succession Planning for Board Members and Key Management Personnel


Succession Planning for Board Members

SinoPac Holdings adopts a candidate nomination system during the election of directors. According to Article 34 of SinoPac Holdings' Corporate Governance Guidelines, diversity shall be considered when determining the composition of the Board of Directors. The percentage of directors concurrently serving as officers shall not be too high and shall comply with Article 28 concerning directors holding concurrent positions. An appropriate diversity policy, which should include but not be limited to criteria in the following two areas, fundamentals and value (gender, age, nationality or country of origin, race or ethnicity, culture background, and other factors) as well as professional knowledge and skills (professional background such as law, accounting, industry, finance, marketing or technology; professional skills; and industry experience), shall be formulated based on SinoPac Holdings' business operations, operating dynamics, and development needs. At the same time, SinoPac Holdings has established the "Regulations Governing the Evaluation of the Performance of the Board of Directors," where performance evaluation shall be conducted on the Board of Directors each year with a view to confirming the effectiveness of the operation of the Board of Directors and assessing the performance of the directors, so as to serve as a reference for nomination of directors for re-appointment.

SinoPac Holdings' 7th Board of Directors consists of seven directors, including three independent directors, one director who concurrently serves as a managerial officer at SinoPac Holdings (where Director Mr. Stanley CHU concurrently serves as the President of SinoPac Holdings), and three directors who do not concurrently serve as a managerial officer at SinoPac Holdings. The composition of the Board of Directors is diverse with different professional experiences (e.g., financial holdings, banking, securities, financial administration or management, and others) or backgrounds (e.g., banking, commerce, law, accounting, finance, information security/information technology, and risk management). In addition, these directors possess the knowledge, skills, and competencies required to perform their duties. SinoPac Holdings will continue to enhance diversity in the structure of the Board of Directors in the future.

As far as succession planning for Board members is concerned, SinoPac Holdings has put in place a well-established management associate program. At present, many senior executives in the Group possess the management and professional competencies required to serve as directors. At the same time, SinoPac Holdings is also searching for professional talents externally, so as to make preparations for succession planning for directors. As regards independent directors who are required to possess the necessary professional experience in commerce, law, finance, accounting or other businesses of SinoPac Holdings, SinoPac Holdings is also seeking candidates for independent directors, so as to serve as a reference for the election of independent directors in the future.

In addition, SinoPac Holdings regularly provides directors with numerous opportunities to attend various seminars, conferences, workshops or courses on topics related to corporate governance, such as finance, risk management, commerce, law, accounting or internal control systems. At least six hours of training courses are arranged for each director every year, in order to enhance the professional knowledge of Board members and enable them to acquire new knowledge.


Succession Planning for Key Management Personnel

In order to lay the foundation for sustainable development at SinoPac Holdings, the "SinoPac Leadership Management Talent Inventory Review and Management Associate Development Program" has been initiated to nurture management associates required for key management personnel at SinoPac. This program targets middle and top-level executives of SinoPac Holdings and its subsidiaries, with a view to actively establishing a talent pool with the potential of becoming management executives at SinoPac Holdings. The specific approach and steps involved in this program include:

  1. Confirm talent requirements: SinoPac Holdings sets the talent specifications and functions for senior executives based on the future strategic development of SinoPac Holdings after interviewing and discussing with senior executives.

  2. Identify high-potential talents: SinoPac Holdings identifies personal traits and potential using international professional assessment tools, as well as conducts a comprehensive review and analysis of senior executives at each department by combining information of different dimensions, in order to establish and maintain a pool of high-potential talents with a professional and objective stand.

  3. Accelerate talent cultivation: In order to nurture talents for echelons of leadership and management, the Company initiated the six-month SinoPac Excellence Leadership Academy comprising development courses in six modules, with the aim of improving strategic thinking skills, enhancing excellent leadership, and cultivating values, self-awareness, and self-improvement in talents, thereby developing a common management language from top to bottom. In order to ensure that they apply the competencies they acquire when implementing strategies and solving organizational issues, SinoPac Holdings has established an individual development program (IDP) to fill the competency gap among individuals through coaching and mentoring, job rotation, and assignments, thereby nurturing all-round talents with leadership skills.

  4. Effectively utilize talents: SinoPac Holdings continues to review key management personnel and effectively use institutional tools. such as salary adjustment, promotion, job transfer, and bonus, in order to develop talents and cultivate wisdom, in hopes of passing on the most important responsibilities in the organization quickly in the future.