Page 337 - TSMC 2022 Annual Report

3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.
Assuming the expected salary rate increases by 0.5% at the end of the reporting period and all other assumptions were held constant, the present value of the defined benefit obligation would increase by NT$746,933 thousand and NT$759,527 thousand as of December 31, 2022 and 2021, respectively.
The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.
Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability.
The Company expects to make contributions of NT$2,832,093 thousand to the defined benefit plans in the next year starting from December 31, 2022. The weighted average duration of the defined benefit obligation is 9 years.
19. EQUITY
a. Capital stock
Authorized shares (in thousands) Authorized capital
Issued and paid shares (in thousands) Issued capital
December 31, 2022
28,050,000 $ 280,500,000 25,930,380 $ 259,303,805
December 31, 2021
28,050,000 $ 280,500,000 25,930,380 $ 259,303,805
A holder of issued common shares with par value of NT$10 per share is entitled to vote and to receive dividends.
The authorized shares include 500,000 thousand shares allocated for the exercise of employee stock options.
On March 1, 2022, the Company issued employee restricted stocks awards (RSAs) for its employees in a total of 1,387 thousand shares with a par value of NT$10 each. The aforementioned issuance of new shares was approved by the relevant authority and the registration has been completed. Refer to Note 26 for the information on RSAs.
On May 10, 2022, the Company’s Board of Directors resolved to cancel 1,387 thousand treasury shares.
Refer to Note 19(e) for the information.
As of the end of reporting period, 1,063,847 thousand ADSs of the Company were traded on the NYSE. The number of common shares represented by the ADSs was 5,319,234 thousand shares (one ADS represents five common shares).
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