TSMC CEO CC Wei Clarifies Internal Bonus Structure and Denies Rumors of Compensation Cuts While Promising Over Thirty Percent Growth for High Performance Employees
TSMC chairman and CEO CC Wei conducted an internal communication meeting after widespread rumors spread that employee bonuses are expected to be cut by 15%. Based on reports by internal company employees Wei stated that the chip manufacturer would not reduce bonuses and that if employees maintained the same performance level, they would receive full year bonuses exceeding 30% of pay for this cycle.
During the internal company forum Wei explained that the company plans its income distribution to employees, the public and the shareholders in a balanced manner, especially as shareholders expect financial returns and the company increases investment in environmental sustainability programs across Taiwan, while at the same time, employee salaries will remain an important component of its operation. The review process for the company's income distribution is to ensure its long term sustainability while rewarding the efforts of employees.
The company will allocate a larger portion of its income toward programs on the local society. While the company increases social responsibility programs outside, Wei stated that internal rewards toward employees will not decrease and that due to high company income and manufacturing expansion, employee bonuses had been above 30% increase every year.
Bonus increase depends on individual employee performance. If a person gets a score of the same evaluation as the previous year, Wei told them that their bonus would increase dramatically. It is anticipated that the rate of bonus increase for this cycle would exceed 30% from the last cycle. In addition, TSMC also announced the revision of the base wage adjustment so that base level workers could obtain higher than usual raise in pay than management as the company expands its production scale.
