5-2 Labor Resources and Labor Relations
Employee Salary
Executive Compensation Policy
Director's CompensationThe compensation of directors is based on the "Compensation for Directors and Functional Committee", including transportation and attendance fees for attending board meetings. Directors are required to listen to the feedback reports on the performance of corporate governance and social responsibility implementation at board meetings in order to implement the spirit of honest governance and achieve the company's commitment to sustainable development.
In accordance with Article 19-1 of the Company's By-laws, the Company shall set aside not more than 5% of the pre-tax net income, excluding the distribution of employee compensation and directors' compensation, as directors' compensation after deducting the annual pre-tax income of the Company before the distribution of employee salary and directors' and supervisors' compensation and retaining the amount to cover accumulated losses, and shall consider the performance of the Company's operations, and shall be reviewed and approved by the Remuneration Committee and the Board of Directors. The independent directors are paid a fixed monthly fee based on the "Compensation for Directors and Functional Committees", as well as transportation and attendance fees for attending board meetings. If an independent director is appointed by the Board as a member of a functional committee, he or she receives additional committee compensation.
General managers' Performance and Compensation
General managers' compensation and bonuses are based on the "Executive Performance Evaluation Program". The performance evaluation items include the company's overall performance indicators (e.g., turnover achievement rate, net income achievement rate, and stockholders' equity return rate) and individual performance indicators (e.g., annual target items set with supervisors, specific performance and achievement of talents introduced or promoted, technology exchange and development of new industries related to environmental protection equipments and materials), and are based on the positions held, responsibilities assumed, and contributions to the Company, with reference to industry standards and reviewed by the Salary
and Compensation Committee and the Board of Directors at any time. Based on the positions held, responsibilities assumed, and contributions to the Company, and with reference to industry standards, and after review by the Compensation Committee and the Board of Directors, the Company will review the compensation rseylsetveamnt f lraowms taimnde troe gtiumlaet ioinn lsig, hint ofr dtheer taoc tsutarilk oep ae rbaatilnagn cceo nbdeittwioenesn a tnhde Company's sustainable operation and risk control.
Compensation to the president and vice president includes salaries, bonuses, employee compensation and remuneration to directors or supervisors of subsidiaries. The annual compensation of managers consists mainly of salaries, performance bonuses and employee bonuses. Employee bonuses are provided in accordance with the Company's By-laws, which stipulate that no less than 3% of the annual earnings should be set aside as legal reserve
after deducting 10% of the annual earnings. For the Company's sustainable development, the Company has added technology exchange and innovation development related to environmental protection equipment and materials to the personal performance index of senior managers, which accounts for 10% of the overall assessment, in order to encourage managers to continuously improve the performance of ESG-related businesses.
Note 1: The proportion and amount of employees' compensation to be distributed are reported in the stockholders' meeting.
Note 2: The company did not hire another compensation consultant in 2022.
Note 3: None of the Company's stakeholders participated in the voting of compensation policies or proposals in 2022.
Compensation Information Disclosure
Employee Benefits
Employee benefit measures are an incentive for employees to improve their performance. In addition to the government regulations, Novatech provides various insurance benefits and retirement pension provisions that are superior to those mandated by laws, to ensure the work and life stability of the employees. In terms of encouraging employees to marry and raise children, we provide maternity leave, paternity leave, family care leave, marriage
leave, marriage subsidy and maternity subsidy.
In 2022, the total expenditure on employee benefits was NT$13,533,604, an increase of 11.77% compared to NT$12,108,164 in 2021. The average cost of employee benefits in 2022 was NT$1,462,000, which shows that Novatech takes care of its employees, and the employees and the company work together for sustainable management.
In 2022, Novatech continued to implement employee care measures for pandemic prevention. In addition to encouraging employees to get vaccinated, we also provided pandemic insurance to all employees. By 2022, the cost of pandemic insurance was about NT$62,606, and the cumulative investment was about NT$97,466. A total of 49 claims were assisted by employees, with a claim rate of 28.49%.
Employee Communication Channel
Novatech values two-way communication with employees, defines "Communication Management Procedures", creates a proactive, positive, smooth and transparent communication environment, and grasps the suggestionsand voices of each employee/partner to respond in a timely and appropriate manner.
Employees can express their opinions through the "Internal/External Opinion Form" or "Employee specific mailbox". The Management Department and relevant departments collect internal opinions and respond to them. Relevant stakeholders understand they can provide opinions through communication and consultation channels, reduce problems and concerns, and maintain a smooth communication model. We did not receive
any unusual internal or external feedback or employee mailbox comments in 2022.
In addition, for the purpose of safeguarding the rights and interests of employees, Novatech has established the "Sexual Harassment Prevention Act". If employees feel that they have been subjected to such behavior or if related incidents occur, they can raise their concerns through the complaint hotline at 03-6676868 ext. 1301 or by sending an email to the complaint mailbox (nova885@novatech.com.tw). The relevant department will take appropriate action upon receiving the complaint. Under this policy and through various channels, there were noreported cases of sexual harassment in the company in 2022.
Employee Satisfaction Survey: Emphasizing Talent Assets and Implementing People-oriented Care
Having suitable, capable and high-performance employees can promote the sustainable and steady development and progress of the company. In 2021, Novatech conducted an employee satisfaction survey to collect information and opinions from the employees, so that the voices of the employees at all levels and departments can be conveyed to the relevant units for evaluation, processing and feedback. In 2022, we focused on the results
of the 2021 employee satisfaction survey and feedback from our daily communication channels to provide employee care. For new employees within 3 months of employment, we will provide them with stage-by-stage care, encouragement, and counseling to understand the Company's culture and organizational customs, etc., and will also conduct an "onboarding survey for new employees" to assist new employees in adapting to the organizational environment as early as possible, so as to enable them to integrate into the team life as soon as possible.
Novatech also joined the "2022 Happy Enterprise" voting, which was held by 1111 Job Bank, and received a silver award as the most aspired happy enterprise to office workers through 3-months network voting andappraisals from the jury.
Newcomer Opinion and Satisfaction Survey
Satisfied employees come from satisfactory employer, and it is also a key indicator for the development of a happy enterprise. Through the "New Employee Onboarding Survey", we optimize the onboarding process of new employees to help them adapt to the workplace quickly and enhance their productivity; through the "Work Engagement Survey", we find out the needs of the employees and supplement the areas that the enterprise needs to improve; we create a workplace where everyone wants to stay in the company, and we unite the centripetal force of the employees to make the employees full of enthusiasm and spontaneous efforts to work for the company's goals and enhance their recognition of the enterprise's culture. In 2022, 27 questionnaires were sent out and 100% returned. Analyzing the results of the survey, it was found that the average score of the survey on new employee satisfaction in 2022 was 91, and the results of the surveys on various aspects are as follows:
Human Rights Protection
In 2018, Novatech promulgated and implemented the Novatech Human Rights Policy with reference to international norms such as the United Nations Universal Declaration of Human Rights, the Global Compact and the ILO Convention, and domestic regulations such as the Labor Standards Act and the Act of Gender Equality in Employment. Novatech will revise the policy in 2023 to state that the Company upholds the principle of equal opportunity and fair treatment for all employees with regard to race, class, language, ideology, religion, political party, gender, marriage, physical and mental disabilities, nationality, political party, etc., and also prohibits the employment of child labor and the occurrence of human rights violations such as forced labor, and creates a friendly and diverse work environment.
The Company is committed to implementing diversity in the workplace to ensure that employees are not subject to discrimination, harassment, or unfair treatment.The Company complies with relevant laws and regulations and establishes standards to ensure that there are no differences in the appointment, promotion, performance, or pay system of employees based on gender, race, age, marriage, religion, or political stance. The Company is committed to implementing diversity in the workplace to ensure that employees are not subject to discrimination, harassment, or unfair treatment. The Company complies with relevant laws and regulations and establishes standards to ensure that there are no differences in the appointment, promotion, performance, or pay system of employees based on gender, race, age, marriage, religion, or political stance.
In order to implement this policy, the Chairman of the Board of Directors pledges to all employees that the Company will uphold the spirit of international human rights conventions, refrain from engaging in any acts of disregard for human rights, and treat each and every employee with dignity and respect. In addition, the General Manager implements the "Novatech Human Rights Policy" and "Integrity Management" education and training for all employees. The scope of the Company's human rights policy encompasses Novatech (Co., Ltd.) and its affiliates, and uses the same standards to expect suppliers, business partners, and customers to comply with the spirit and basic principles of this policy. At the same time, by requiring suppliers to sign a "Partnership Commitment Letter" prior to cooperation, it requires suppliers to comply with the guidelines related to corporate social responsibility, such as labor rights, conflict minerals management, and environmental protection.
