Corporate Governance

■ Competent functional committees

To ensure an effective Board of Directors and refine the quality of board decisions, the Audit Committee, the Corporate Governance and Nomination Committee, the Remuneration Committee, the Board Strategy Development Committee, the Sustainable Development Committee and the Risk Management Committee are created by authority and function under the Board of Directors and are responsible for deliberating proposals and major issues in the economy, the environment, the society and risks. The responsibilities and status of each functional committee are:

■ Diverse board members

■ Manager remuneration policy

  • Purpose
    To encourage E.SUN managers to achieve and surpass Company goals, create profit, improve business performance, take into account the reasonable linkage to future risks and evaluate managers' remuneration.
  • Salary structure
    The fixed salary is decided based on managers' professional experiences and with reference to market standards. The variable pay evaluates managers' realization of corporate core values, qualitative management of quality, customer rights, qualitative finance and business performance indicators.
  • Review process
    Manager remuneration policies and structures are reviewed by the Remuneration Committee and submitted to the Board for decision.
  • Risk linkage
    Manager bonuses can be affected in the event of a major risk event affecting the Company's business reputation or due to internal management mishap or employee misconduct. This shall achieve the effect of risk control and generate high linkage with E.SUN's long-term overall performance.

■ CEO Performance Indicators

■ Long term Incentive Reward System

In order to encourage executive managers, key professional talents and the entire personnel to pursue long-term overall performance, E.SUN has taken into account a variety of indicators including financial outcome, business operation, brand, ESG, talent cultivation, continued service, risk management, etc. to formulate a long-term incentive system.

■ Enhancement of Performance Incentive

Based on our long-term and stable management, over 90% of E.SUN employees hold E.SUN stocks. In "E.SUN FHC Executives Election Rule," for all vice presidents after 3 years of appointment, the market value of the E.SUN stocks they hold, including those held by spouse, children and employee savings association, must be 5 times more than their salary. Similarly, the standard set for CEOs/presidents after 3 years of appointment is 10 times more than salary.

■ A Banker's Bank

Since foundation, E.SUN has established the system of professional manager operation and expert guidance to conduct the leadership succession in a systematic and organized manner. On June 12, 2020, the Board of Directors and standing board of directors elected Joseph N.C. Huang as Chairman of E.SUN Bank, Magi Chen as President of E.SUN FHC, and Mao- Ching Chen as President of E.SUN Bank. In the past 12 years of serving as President, Chairman Joseph N.C. Huang led E.SUN to pursue sustainable development via three pillars of "system establishment, talent cultivation and information development." Talent is the leading and key indicator for performance. The aim is to continually achieve the three goals of "overall performance, CSR and sustainable development," to realize the shared vision of E.SUN, and to become the most respected enterprise with the best overall performance.

■ Contribution to industry development

The financial holding company and its subsidiaries actively participate in activities organized by The Bankers Association of the Republic of China, Taiwan Securities Association, Trust Association of R.O.C., TABF and TFSR in order to promote the development of the domestic financial industry. Ms. Liu Mei-Ling, SEVP of E.SUN Bank, is now the commissioner of the Electronic Payment Committee under The Bankers Association. Ms. Liu provides advices on financial innovation topics, such as open banking, third party providers, and application of digital technologies. Chief Risk Officer Oliver Hsieh is the Vice Chairperson of the risk management team of the Bankers Association of the Republic of China and provides advices on topics related to financial risk management, climate change risk management and regulations on the requirements of bank capital.

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