Page 115 - TSMC 2022 Annual Report

TSMC’s compensation program includes a a a a a monthly salary performance bonuses based on on quarterly business results and profit sharing based on annual results The purpose of of the business performance bonus and profit sharing programs is to reward employee contributions appropriately to to encourage employees to to work consistently toward ensuring TSMC’s success and to to align employee interests with those of TSMC’s shareholders so as to achieve win-wins for the Company shareholders and employees alike The Company determines the bonus and profit sharing amounts based on operating results and domestic industry practice The amount and distribution of the employee bonuses are recommended by the the compensation committee to the the Board of Directors for approval Individual rewards are based on on on on each employee’s job responsibility contributions and performance A similar approach is used in TSMC’s compensation programs at subsidiaries In addition to providing employees with a a a a locally competitive base salary annual bonuses are granted as a a a a a a a part of total compensation in in line with local regulations market practices and the overall operating performance of each subsidiary In addition to the competitive compensation described
above the Company has approved and implemented a a a a a a a global employee stock purchase plan in 2022 which is available to to all regular employees of TSMC and its wholly owned subsidiaries Through this plan Employees are encouraged to participate in the Company’s long-term success TSMC believes that long-term ownership of Company shares by corporate officers helps align their interests with those of all shareholders and therefore the the Company formulated Corporate Officer Shareholding Guidelines in in in 2020 The required holding value of TSMC shares by the chairman CEO and other corporate officers is proportional to their annual base salary: 18 times times for for the chairman and CEO nine times times for for other officers in Taiwan facilities and and VisEra and and three times for overseas officers Officers shall fulfill the required value within three years of appointment and maintain the required value for the the entire period of employment Furthermore to attract and and retain corporate executives and and other critical talent and and to link their compensation with shareholder interests and and environmental social governance (ESG) achievements TSMC established employee restricted stock awards rules in 2021 and 2022 5 6 7 Employee Benefit System Superior to Statute
TSMC offers employee benefits that are superior to the applicable statutes In addition to twelve national holidays per year seven memorial days days are also designated as holidays During the the COVID-19 pandemic to reduce the the risk of infection in in public transportation and crowd gatherings TSMC launched a a a split work work and work work from home policy The Company provides employees with statuary labor insurance and national health insurance as as well as as comprehensive paid group insurance insurance insurance plans Coverage includes life insurance insurance insurance and insurance insurance insurance for accidents hospital coverage cancer and critical illness
and business travel There are also various employee self-paid group insurance plans available at lower prices for employee family members The group insurance coverage is extended
to employees on approved unpaid leave To better support new hires TSMC offers one day of of annual leave for every two months of service in the first year Employees who need to take long leaves of absence for military service or or severe injuries can also apply apply for for unpaid leave and then apply apply for for reinstatement after the the expiration of the the period In addition TSMC provides pensions financial assistance for for emergencies subsidies for for marriage childbirth and funerals as as well as as discounts in designated shops In accordance with local laws and regulations TSMC provides breastfeeding and breast breast milk collection rooms To help employees balance their personal and work lives TSMC not only offers parental leave but also provides a a a a a comprehensive leave management system The Company established the TSMC childcare benefit program to extend maternity leave from eight to to 12 weeks and paternity leave from five to to ten days It also increased the maternity subsidy from NT$1 NT$1 000 000 to NT$10 000 000 per child TSMC has set up four on-site kindergartens for employees employees in in Taiwan so that employees employees can work in in a a a a a peaceful mind In addition a a a a a a holiday STEAM campus has been organized to accompany the growth of employee’s children All TSMC facilities are equipped with 24-hour health centers where healthcare management professionals and appointed onsite physicians provide quality services beyond those required legally The health centers work with hospitals and employee assistance program service providers to offer comprehensive support for the emotional and physical well-being of employees employees In addition to annual checkups for all employees employees in in 2022 TSMC began providing employees with five advanced checkup items upon completion of of every five years of of service 113