The results of the corporate governance evaluation[1] in 2021 were released. Phison continues to be ranked in the top 6% to 20% among 109 OTC companies. However, the scores improved significantly compared with last year, and were also much higher than the average scores of the top 6% to 20%[2]. The effectiveness of the internal implementation of corporate governance has been gradually demonstrated.
The indicators of corporate governance evaluation are divided into four categories: safeguarding shareholders’ rights and interests and treating shareholders equally (20%), strengthening the structure and operation of the board of directors (33%), improving information transparency (26%) and implementing corporate social responsibility (21%). Phison has improved in all four categories.
In 2021, Phison set up two functional committees under the board of directors (Risk Management Committee and Corporate Sustainable Management Committee) in response to operational needs, and set up a chief corporate governance officer, which is a major progress in corporate governance. In the future, we will continue to optimize the internal organizational structure and management mechanism based on the indicators of the corporate governance evaluation, and work towards the goal of top 5%.
|
FY |
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
|
Score |
72.66 |
77.00 |
50.62 |
69.65 |
68.23 |
64.31 |
80.56 |
88.21 |
|
OTC company ranking |
N/A |
6%~20% |
81%~100% |
21%~35% |
21%~35% |
21%~35% |
6%~20% |
6%~20% |
|
Electronics industry with a market value above NT$10 Billion |
N/A |
61%~100% |
61%~100% |
21%~40% |
21%~40% |
|||
[1] In order to respond to the rapid development of corporate governance reform in neighboring countries, accelerate the promotion of corporate governance of listed OTC enterprises in Taiwan, assist enterprises in sound development and enhance market confidence, the Financial Supervisory Commission issued a five-year "Strengthening Corporate Governance Roadmap (2013~2017)" in December 2013. Among many projects, the Financial Supervisory Commission listed the handling of corporate governance evaluation as a key work item in 2014. The reason for its promotion is that through the comparison results of corporate governance in the overall market, it is hoped that enterprises can pay more attention to corporate governance, guide the healthy competition of listed companies, strengthen the level of corporate governance, and further shape the corporate governance culture of active improvement.
[2] 6%~20% Average: 77.11