Page 387 - TSMC 2020 Annual Report

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019
(In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Labor cost
Salary and bonus
Labor and health insurance
Pension 1,551,256 Board compensation - Others 1,736,977
$
45,256,603 2,161,319 962,997 525,853 1,031,341
$
- - - - -
$ 114,595,365 5,398,373 2,514,253 525,853 2,768,318
$ 52,887,855 2,688,910 1,412,525 - 1,513,328
$ 34,021,777 1,828,610 910,355 376,433 919,576
$ - - - - -
$ 86,909,632 4,517,520 2,322,880 376,433 2,432,904
$ 75,864,049 Depreciation $ 288,762,450 Amortization $ 4,732,478
$ $ $
- $ 31,609 $ -
$ 125,802,162 $ 313,379,686 $ 7,047,694
$ 58,502,618 $ 243,160,463 $ 2,971,336
$ 38,056,751 $ 24,285,569 $ 2,367,550
$ -
$ 18,511
$ -
$ 96,559,369 $ 267,464,543 $ 5,338,886
Note 1: Note 2: Note 3: Note 4: Note 5:
non-employee directors, respectively. Average labor cost for the years ended December 31, 2020 and 2019 were NT$2,615 thousand and 2,183 thousand, respectively.
Note 6:
The total compensation paid to the executive officers is decided based on their job responsibility, contribution, company performance and projected future risks the Company will face. It is reviewed by the Compensation Committee then submitted to the Board of Directors for approval.
Note 7:
According to the Company’s Articles of Incorporation, the Board of Directors is authorized to determine the salary for the Chairman, Vice Chairman and Directors, taking into account the extent and value of the services provided for the management of the Company and the standards of the industry within the R.O.C. and overseas. The Articles of Incorporation also provide that the compensation to directors shall be no more than 0.3% of annual profits and directors who also serve as executive officers of the Company are not entitled to receive compensation to directors. The distribution of compensation to directors shall be made in accordance with the Company’s “Rules for Distribution of Compensation to Directors” based on the following principles: (1) directors who also serve as executive officers of the Company are not entitled to receive compensation; (2) the compensation for independent directors may be higher than the other directors, as all independent directors also serve as members of the Audit Committee and the Compensation Committee and thus participate in the discussions as well as resolutions of related committee meetings in accordance with the charter of each committee; and (3) the compensation for overseas independent directors may be higher than domestic independent directors.
As of December 31, 2020 and 2019, the Company had 47,917 and 44,058 employees, respectively. There
Average salary and bonus for the years ended December 31, 2020 and 2019 were NT$2,392 thousand and 1,973 thousand, respectively. The average salary and The Company did not have supervisors for the years ended December 31, 2020 and 2019. Therefore, there was no compensation to the supervisor.
bonus increased by 21.24% year over year.
Classified as Cost of Revenue
Classified as Operating Expenses
Other Operating Income and Expenses
Total
Classified as Cost of Revenue
Classified as Operating Expenses
Other Operating Income and Expenses
Total
$ 69,338,762 3,237,054
Year Ended December 31, 2020 Classified as
Year Ended December 31, 2019 Classified as
49,938,113 24,585,627 2,315,216 were 9 and 8
$
The Company’s compensation policies: The Company’s employees are entitled to a comprehensive compensation and benefits program above the industry average. The compensation program includes a monthly salary, business performance bonuses based on quarterly business results, and a profit sharing bonus based on annual profits. The Company determines the amount of the business performance bonus and profit sharing based on operating results and industry practice in the R.O.C.. The amount and distribution of the bonus and profit sharing are recommended by the Compensation Committee to the Board of Directors for approval. Individual rewards are based on each employee’s job responsibility, contribution and performance.
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STATEMENT 17