Board Performance Evaluation by External Agency
In 2018, FENC amended FENC Board Performance Evaluation Rule, adding provisions on the requirement that Board performance evaluation shall be conducted once every 3 years by external independent agency or a team of experts and scholars. In 2020, FENC commissioned EY Transaction Advisory Services Inc. to conduct the first external Board performance evaluation. Prior to this evaluation, FENC had no business dealings with EY Transaction Advisory Services Inc. EY Transaction Advisory Services Inc. is an independent agency with credentials and professional experience meeting the requirements for conducting this external evaluation.
The overall Board performance is classified into the levels of “benchmark,” “advanced” and “fundamental.” FENC Board was evaluated on the aspects of Structure, People as well as Process and Information. The Board received the rating of “benchmark,” “advanced” and “benchmark” on the three aspects, respectively. The evaluation report was completed in January 2021, and was presented to the Remuneration Committee and to the Board during its March 24th meeting. The result will serve as a reference for the nomination and re-election of and remuneration for Board members. The followings are recommendations and responses indicated in the report:
Establish non-statutory functional committees.
The Company has established Sustainability Committee in November 2020 to strengthen Board structure.
Enhance Board diversity.
The Company will review Board nominees carefully to enhance Board diversity.
Increase Board meeting attendance rate.
The Company has strongly encouraged Board members to attend the Board meetings.
Invite non-executive Board members to participate in key operational meetings.
The Company has arranged for non-executive Board members to take part in major operational meetings.