From employees’ perspective, safety, friendly environment and high quality facilities are critical support for their undivided devotion to work, but more importantly, the Company must provide comprehensive payroll and benefit policy.

Compensation

FENC established a variable payroll system that rewards long-term individual and team performance. The Articles of Incorporations stipulates that 2%-3.5% of the Company’s net profit shall be dedicated toward employee compensation. Please refer to Talent Development for details. The company also considers the overall corporate and each SBU operational performance for monthly performance bonuses and year-end bonuses. Mid-level managers and above may participate in the employee stock ownership plan (ESOP), which purchases Company shares systematically with 15% contribution from the Company. A trustee manages the shares and calculates the trust property equity. Upon termination of employment, employees may redeem the investment in the form of stocks or cash. ESOP offers a long-term option for employee bonus and investment returns.

Compensation for executive levels above executive vice president is based on corporate performance and the market average. In addition, the compensation is adjusted based on performance review and factors in future operational risks. The Company does not offer signing or recruitment bonus for senior managers. Considerations for compensation of other employees include overall corporate and departmental performance; pay rates among listed companies; market survey provided by professional consulting firms; overall financial and management risks. Stock options are not available for regular employees, and the company policy does not include deferred or vested share options.

Regarding the remuneration for Board members and managers, the Remuneration Committee, which is convened by the independent Board members, determines the remuneration policy and presents discussions for Board approval. Please refer to Sustainable Management for details.。

There is a gender difference among different industries within FENC’s industry chain. However, gender strengths are also reflected in the salary level, which is a reflection of the Company’s fairness in internal training and performance review.

FENC sites in Taiwan, Mainland China, Japan and the U.S. are mainly in the mid to upstream industries with high reliance on chemistry, a field where male employees tend to outshine female staff, and therefore better paid. For sites in Taiwan, pay rate for female employees are catching up to and even surpassing those of male employees. Sites in Vietnam see a higher concentration on the downstream garment industry, in which female employees tend to excel, hence receiving higher salary than their male counterparts.

Average and Median Annual Salary for Non-Managerial Positions

Note:
1. FENC is considered a stand-alone entity for the statistics in the above table.
2. Statistics in row “A” exclude senior vice president and positions that are higher; statistics in row “B” excludes senior vice present, positions that are higher, and positions held by foreign employees.

Salary Comparison by Gender

Salary Comparison to Market Rate

Ratio of Salary Between the Highest Salary and Median Salary in 2021

Ratio of Salary Increase Between the Highest Salary and Median Salary in 2021