In the highly competitive semiconductor industry, quality talents are essential for our company to provide high quality products and services, and to maintain the vitality of corporate innovation; as such, we consider recruiting and retaining quality talents as a key issue in our business management. We actively implement industry-academia cooperation programs and participate in university career fairs in order to attract outstanding talents to join our company. For our employees, we continue to develop their professional functions to create workplace value and personal competitiveness, and at the same time achieving our goal of enhancing the overall competitiveness of Phison Group.
The Company has pension regulations that apply to all full-time employees. It regulates the pension payment.
(1) If the employee chooses the pension system of the Labor Standards Act, the pension will be paid as follows. Based on the years of the service, if it is below 15 years (included), two units per full year will be paid. If it is over 15 years, each full year over the 15 years will add one unit to the pension. However, the maximum number of units is 45. The length below half a year is counted as half a year, the length over half a year but below one year is counted as one year. From Feb of 2001, 3% of the salary is appropriated into the employee pension fund. From Jul of 2016, 2% of the salary is appropriated into the employee pension fund and then transferred to the special account in the Central Trust Bureau under the name of The Supervisory Committee of Workers’ Retirement Fund.
(2) If the employee chooses the pension system of Labor Pension Statutes, the pension will be paid as follows. Employees first choose the length of service which applies to this system. From the start date to the leave date, their companies should appropriate no less than 6% of the salary into the personal pension account. In addition to the amount appropriated by the company, employees may deposit less than 6% of the salary into personal pension account. Two times of appropriation percentage change are allowed.
In order to attract and retain the talents needed by the Company, and to motivate and enhance the staff’s cohesion to create the interests of the Company and shareholders, we pursuant to Article
28-3 of the Securities and Exchange Act and Regulations Governing the Offering and Issuance of Securities by Securities Issuers to stipulate 2020 Employee Stock Option Certificate Issuance and Stock Subscription Method. By cooperating with the existing employee reward system, ESOP can play the function of performance appraisal and motivating employees.
Those who are granted stock option rights are limited to full-time employees of the Company and domestic and foreign subsidiaries. The employees who can be the warrant holders and the number of options received will be considered by the employee’s seniority, position, work performance, overall contribution and special achievements. The EPOS draft resolution will be confirmed after the approval of more than one-half of the directors present (the attendance should be more than two-thirds of the board of directors). However, if the employees with director and/or managerial status are granted the stock option rights, they shall obtain the approval of the remuneration committee in advance.
This employee stock option certificate can be exercised 2 years after the issuance date, and the cumulative maximum exercisable ratio is 50% after the expiration of 2 years and 100% after the expiration of 2.5 years. The total number of employees entitled to stock options for the year was 736, including 37 senior managers and 699 employees, with a coverage rate of approximately 20.4%.