Happy Workplace
Remuneration & Incentives
Remuneration and Benefit System
Chunghwa Telecom and our group companies see employees as vital assets to the Company. we offer salaries above the industrial level and a variety of benefits and bonuses. In order to boost the birthrate, Chunghwa Telecom implements 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 |
| Item | Salary Indicators | |
|---|---|---|
| Employee Salaries | Median Employee Salary NT$1,510 Thousand | Mean Employee Salary NT$ 1,548 Thousand |
Retirement Benefits
Chunghwa Telecom and our group companies established the mechanism with welfare of labor retirement. Matters concerning employee retirement are handled in line with the relevant regulations of Employees’ Pension, Consolation Pay, Labor Standards Act, and Labor Pension Act., etc. Also, Chunghwa Telecom has 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.
Performance Appraisal
Employees Performance Evaluation Guidelines” has been formulated at Chunghwa Telecom and our group companies to effectively evaluate performances of employees using an array of performance evaluation mechanisms for the all-win scenario of employees, customers, and group companies.
| Type | Description | Frequency |
|---|---|---|
| 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
Remuneration and bonuses of our employees in Chunghwa Telecom and our group companies are linked to annual performance reviews. In addition, the retention bonuses are applicable to all employees in Chunghwa Telecom, offering cash reward if the employee has attained a certain standard of continuous service years 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 regulations of performance management and compensation management for senior-level management which incorporates ESG indicators and sustainable development. These regulations are 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.
| Category | ESG Indicators | The ratio of the linking ESG performance to Executive Variable Compensation | |||
|---|---|---|---|---|---|
| 2022 | 2023 |
2024 |
2025 |
||
| 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% | 15% | 25% | 30% |
Incentive Compensation Clawback Policy for the Senior-level Management of Chunghwa Telecom
Chunghwa Telecom continued to strengthen its corporate governance by following international best practices. Through adopting “Incentive Compensation Clawback Policy”, the Company stands as a pioneer in the Taiwan telecom industry and as one of the few companies in Taiwan to facilitate the Compensation Clawback Policy to further enhance interest alignment between top management and shareholders.
The U.S. Securities and Exchange Commission (SEC) requires all NYSE-listed foreign private issuers must comply with Section 303A.14 of the NYSE Listed Company Manual, to adopt a Clawback Policy by December 1, 2023. ROC law does not contain such requirement. The board of directors passed a resolution to approve “Incentive Compensation Clawback Policy of Chunghwa Telecom Co., Ltd.” (the “Policy”) on November 8, 2023.
This Policy states that the Company should recover Erroneously Awarded Compensation which any portion of such Incentive Compensation is received by the Covered Executives during the last three completed Fiscal Years or any applicable Transition Period preceding the date that the Company is required to prepare a Restatement which resulting from the issuer’s material noncompliance with any financial reporting requirement under securities laws.