Remuneration & Incentives
Remuneration and Benefit System
Chunghwa Telecom sees employees as vital assets to the Company. Adopting the principle to “No Layoff and No Pay Cut” Principle , we offer salaries above the industrial level and a variety of benefits and bonuses. In order to boost the birthrate, we implement childcare subsidy measures to relieve the burden of employees in childbirth and nurturing children aged 0-6. That is how we build a happy and friendly workplace for employees to perform to the best of their ability at ease to create higher values for individual and the Company alike.
|Base Salary in Taiwan in 2022||Base Salary at CHT||Avg. Salary in ICT services||Avg. Salary at CHT|
|NT$ 25,250||NT$ 33,370||NT$ 75,544||NT$ 71,576|
|Employee Salaries||Median Employee Salary NT$1,510 Thousand||Mean Employee Salary NT$ 1,548 Thousand|
Matters concerning employee retirement are handled in line with the relevant regulations of Employees’ Pension, Consolation Pay, and Severance Pay Guidelines of Chunghwa Telecom, Labor Standards Act, and Labor Pension Act. Also, the mechanism for rehiring veteran retirees as consultants is in place for them to pass down their seasoned experiences effectively for the benefit of business development.
To help our employees to adapt to and create quality lives after retirement, Chunghwa Telecom Training Institute was especially commissioned to organize “Care Program for Retirees’ Sweet, Happy Lives.” Also, we continued to contribute to “Chunghwa Telecom Retirees Association” in support of it organizing recreational activities.
“Employees Performance Evaluation Guidelines” has been formulated at Chunghwa Telecom to effectively evaluate performances of employees using an array of performance evaluation mechanisms for the all-win scenario of employees, customers, and the Company.
|Management by objectives||To support the company's goals, each department sets their departmental KPIs in line with their business characteristics and operational objectives for individuals to undertake in order to ensure the alignment with the objectives.||Once a year|
|Multidimensional performance appraisal||The performance evaluators of Chunghwa Telecom employees are not limited to a single source. For example, the performance evaluation of customer service and store personnel includes not only supervisors but also external customers.||Ongoing|
|Team-based performance appraisal||The assessment mechanisms by employee category and by ranking are in place at the Company.||Twice a year|
|Agile conversations||The Company encourages managers to give feedbacks to employees for their good performance or room for improvement, so that employees can better or improve themselves timely, along with the performance appraisal system in place for recording, tracking, and management.||Ongoing|
Long-term Incentive Plan
Employee remuneration and bonuses are linked to annual performance reviews. Retention bonuses are applied to all employees, offering cash reward if the employee has attained a certain standard of continuous service and certain level in the recent performance appraisal.
Senior-level Management Compensation Indicators
We provide potential talents with competitive remuneration. Through our transparent system, we reward employees based on the operational performance of the Company. The "Compensation Committee" has been set up to review the compensation system on a regular basis, including performance evaluation of directors and executives, compensation policies, systems, standards and structures.
To ensure sound corporate governance and effective sustainability management, we have designed the executive compensation plan which incorporates ESG indicators and sustainable development. The plan is extended for us to supervise if senior executives truly achieve their ESG targets. We build the mechanism to link between the ESG/sustainable development performance and the senior executive performance evaluation, which has a direct influence on the individual's bonus and compensation. The ratio of the linking ESG performance to executive compensation is assessed and raised year by year to reinforce the linkage.
|Annual Evaluation Items||Annual Evaluation Items (1) power usage; (2) renewable energy; (3) SME digital empowerment; (4) Code of Conduct; and (5) ethical management 10%||10%|