Page 16 - 2014 CPT Corporate Social Responsibility Report
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Lungtan plant to meet the norms specified by the competent authority   Compensation policy                                                                 every year of service up to 15 years, and 1 base point is
            on November 22, 2013. The total wastewater recycling facilities are    I. The overall compensation of top managers (including General                      given for every year thereafter with the maximum of 45
            expected to be completed in December 31, 2015. These facilities will                                                                                       base points. Service less than half of a year is counted as
            enable CPT to achieve the target of zero emissions.                        Manager and Vice GMs) is based on a reasonable correlation                      half-year, and service over half of a year is counted as a
                                                                                       between industry standards, personal performance, operational                   full year.
       Compensation Committee                                                          performance of CPT, and future risks. The compensation for top             (2) Labor Pension Act (new system)
                                                                                       managers is assessed and adjusted on a regular basis.                           CPT remits monthly contributions to the employee’s
                   CPT established a compensation committee on August              II. The compensation system for top managers currently consists of                  retirement account The employer contributes 6% and
            26, 2011 in accordance with the regulations specified in Article           fixed salaries and incentives and bonuses.                                      employee contributes no more than 6% towards the
            14.6 of the Securities and Exchange Act to implement corporate             1. Fixed salary: Base salary (12-month base salary and fixed                    retirement fund.
            governance and establish a sound compensation system for board                                                                                     3. Retirement Bonus is given based on the salary before
            directors and managers. Article 3 of the organizational regulations           allowances)                                                             retirement and the number of days worked in the year.
            of the CPT compensation committee states the committee shall                  (1) Fixed salaries account for a gradually shrinking portion            (1) Calculation: Salary at retirement * number of months
            consist of a minimum of three members who are appointed by the                                                                                             counted for year-end bonus * number of days worked in
            board of directors. On August 13, 2013, the independent directors                  of the total compensation, while incentives and bonuses                 the year in percentage.
            Mr. Jian-Zhong Yuan, Mr. Jian-He Zhao, and Mr. Yu-Yuan Cai                         gradually increase in importance.                                  (2) Year-end bonus (x months’ salary): Calculated and
            were appointed to serve as the members of the 2nd compensation                (2) Market positioning is set at the middle range (p. 50);                   determined for the respective year.
            committee.                                                                         regular salary survey is launched to study the market
                                                                                               trend.                                                      CPT Organizational Structure chart
                   The CPT Board of Directors authorizes the Remuneration              2. Incentives and bonuses: Quarterly and year-end bonuses, and
            Committee to set up and regularly review a performance evaluation             other bonuses                                                    General Shareholders’ Meeting
            system for the directors, supervisors and managers. Members of                To strengthen the connection between the compensation for
            the Remuneration Committee are expected to fulfill their duties               top managers on the one hand and operational performance                                                  Board of Directors
            faithfully, report to the Board and forward suggestions and proposals         and shareholder benefits on the other, incentives and bonuses
            to the Board for discussion. The compensation committee may, upon             are granted based on the operational performance of CPT in       Review Committee                                             Compensation Committee
            resolution, commission lawyers, accountants, or other professionals           the respective quarter/year and personal performance.
            to conduct reviews or provide consultation as required for the                (1) Linkage of annual targets for individual executives: Unit    Responsible for the review of major proposals                Responsible for determining the
            performance of functions. CPT participates in the salary surveys                   KPI attainment rates and personal evaluation results serve  as a reference for board decisions                           compensation of board members and top
            conducted by Towers Watson, a renowned international salary                        as reference indicators                                                                                                  executives
            survey institution, on a regular basis. In addition, CPT has a firm           (2) Linkage of annual financial and operational performance:     Audit Committee
            grasp of salary trends in the industry and conducts regular reviews                Company KPI attainment rates, revenue, and profit after                                                                     Safety and Health Division
            of salary levels in CPT to achieve the goal of talent retention. Top               tax serve as reference indicators.                          Responsible for conducting audits        Chairman and CEO
            manager incomes are disclosed in the annual financial reports of              (3) The target is the medium level of the salary market and the  of the corporate management               General Manager    Responsible for matters related to environmental
            CPT. Please refer to the Market Observation Post System at http://                 actual amount is adjusted based on corporate performance.   system and all operational                                   protection, public safety, medical services and
            mops.twse.com.tw/mops/web/t163sb01                                     III. Retirement benefits: Both the top managers and employees           procedures                                                   Insurance
                                                                                       of CPT are granted pensions in accordance with the Labor
                   In 2014, partial content of remuneration policy was amended,        Standards Act (old system) and the Labor Pension Act (new            Legal Compliance                                                    Product Planning &
            and the formula for calculation of the retirement bonus was                system)                                                                     Office                                                       Management Center
            updated to salary at retirement*no. of months eligible for year-           1. Retirement criteria
            end bonus*no. of days contributed in the year (in percentage).                (1) Age 55 with over 15 years of service                         Responsible for legal compliance                             Responsible for matters related to product planning,
            The rest of the content remains the same as written in 2013. The              (2) Over 25 years of service                                     related matters                                              development and design
            current remuneration policy links the performance evaluation of               (3) Request to retire: The Company reserves the right to
            the directors, supervisors and managers with the economic goals,                   deny such requests if they are deemed needed for the          Manufacturing                                                 Advanced Technology Center
            but not yet with the environmental and social goals. CPT expects to                operations. Retirees aged 53 with 12 years of service.      Operations Center
            establish the links within the next three years.                                   Retirees aged 57                                                                                                         Responsible for matters related to the R&D of
                                                                                       2. Pension criteria                                                 Responsible for matters related to                           advanced technologies
│P15│TOP                                                                                  (1) Labor Standards Act (old system):                            the manufacture of panels
                                                                                               Based on the years of service, 2 base points are given for                                                                      Financial Operations
                                                                                                                                                            Human Resource                                                   Management Department
                                                                                                                                                                 Division
                                                                                                                                                                                                                        Responsible for matters related to investment,
                                                                                                                                                           Responsible for the planning of                              accounting, financial and tax affairs, and services
                                                                                                                                                           human resources and the recruitment
                                                                                                                                                           of new talent                                                     Strategy and Investment
                                                                                                                                                                                                                             Management Department
                                                                                                                                                           Sales & Marketing
                                                                                                                                                                   Center                                               Responsible for matters related to strategic
                                                                                                                                                                                                                        deployment, investment management and media
                                                                                                                                                           Responsible for matters related                              relations
                                                                                                                                                           to the sale of TFT panels

                                                                                                                                                               Procurement
                                                                                                                                                                 Division

                                                                                                                                                           Responsible for matters related to
                                                                                                                                                           the procurement of raw materials,
                                                                                                                                                           equipment and works

                                                                                                                                                            Legal Affairs and
                                                                                                                                                            Intellectual Rights

                                                                                                                                                                  Division

                                                                                                                                                           Responsible for matters related to the
                                                                                                                                                           legal affairs and intellectual Property
                                                                                                                                                           Rights.
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