Page 416 - TSMC 2022 Annual Report

Taiwan Semiconductor Manufacturing Company Limited
STATEMENT OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Unless Specified Otherwise)
Labor cost
Salary and bonus
$ 118,078,587 Labor and health insurance
5,422,819 Pension 2,507,996 Board compensation - Others 2,705,149
$ 78,041,998 3,306,536 1,364,188 743,990 1,411,448
$
- - - - -
$ 51,640,741 2,511,734 1,135,950 507,304 1,093,824
$ 56,889,553 $ 27,176,646 $ 2,590,267
$ - - - - -
$ -
$ 146,549
$ -
$ 128,714,551
$ 84,868,160 $ - $ 213,582,711 Depreciation $ 385,647,215
$ 27,939,678 $ 8,189 $ 413,595,082 Amortization $ 6,069,729
$ 2,637,232 $ - $ 8,706,961 Note 1:
As of December 31, 2022 and 2021, the Company had 61,777 and 54,193 employees, respectively. There
were both 9 non-employee directors. Note 2:
Average labor cost for the years ended December 31, 2022 and 2021 were NT$3,446 thousand and 2,706 thousand, respectively. Note 3:
Average salary and bonus for the years ended December 31, 2022 and 2021 were NT$3,175 thousand and 2,463 thousand, respectively. The average salary and Note 4:
The Company did not have supervisors for the years ended December 31, 2022 and 2021. Therefore, there was no compensation to the supervisor.
bonus increased by 28.91% year over year.
Classified as Cost of Revenue
Year Ended December 31, 2022 Classified as Other Classified as Operating Operating Income Expenses and Expenses
Total
$ 196,120,585 8,729,355 3,872,184 743,990 4,116,597
Classified as Cost of Revenue
$ 81,828,800 4,214,578 2,084,604 - 2,098,074
$ 90,226,056 $ 375,608,062 $ 5,510,463
Year Ended December 31, 2021 Classified as Other Classified as Operating Operating Income Expenses and Expenses
Total
$ 133,469,541 6,726,312 3,220,554 507,304 3,191,898
$ 147,115,609 $ 402,931,257 $ 8,100,730
Note 5:
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, a profit sharing bonus based on annual profits, and a subsidy based on Employee Stock Purchase Plan. 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 (Note 8) to the Board of Directors for approval. Individual rewards are based on each employee’s job responsibility, contribution and performance.
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 (Note 8) 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 (Note 9) and the Compensation Committee (Note 8) 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.
Note 8:
Compensation Committee renamed to Compensation and People Development Committee from February 14, 2023.
Note 9:
Audit Committee renamed to Audit and Risk Committee from February 14, 2023.
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STATEMENT 16