Page 118 - TSMC 2024 Annual Report

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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 compensation and people development committee to to the Board of Directors for approval Individual rewards are based 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 established a a a a a global employee stock purchase plan in 2022 which is available to all regular employees of TSMC and and its wholly owned subsidiaries and and in 2024 extended the coverage to majority-owned subsidiaries as well Through this plan employees are encouraged to participate in the Company’s long-term success To strengthen the the link between TSMC managers and shareholders’ interests the Company established corporate officer shareholding guidelines in in in in 2020 The required holding holding value of TSMC shares by the chairman CEO and corporate officers is proportional to their annual base salary: 18 times for the chairman and CEO nine times times or or three times times for officers (three times only for officers hired in overseas) Officers must reach the required value within three years of appointment and maintain it for the the entire period of employment Furthermore to attract and and retain corporate executives and and other critical talent and to link their compensation with shareholder interests and environmental social governance (ESG) achievements TSMC established employee restricted stock awards for each year starting from 2021 to 2024 5 6
7
Employee Benefits Exceed Legal Requirements
TSMC generally offers employee benefits superior to those required by applicable statutes In addition to twelve national holidays per year seven memorial days days are also designated
as holidays To alleviate traffic congestion during commuting hours support family care needs and create an an inclusive workplace the Company implemented a a a a staggered commuting policy in in 2023 which is continuously optimized To encourage employee participation in in the Company’s vision of “making society better ” TSMC provides one day of volunteer leave
per year The Company provides employees with statuary labor insurance insurance and national health insurance insurance as as well as as comprehensive paid group insurance plans Coverage includes life insurance insurance and insurance insurance for accidents hospitalization cancer critical illness maternity and international business travel There are also various and unique employee self-paid group insurance plans available 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 of annual leave
for every two months of of 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
for for unpaid leave
and then apply
for for reinstatement after the the expiration of 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 response to the continuous growth and diversification of its workforce and to enhance support for for employees’ lives and family care the the Company launched the the “TSMC Global Flexible Benefit Plan (abbreviated as tFlex)” in in 2024 building on its its existing benefits system This plan is is is divided into four main categories: medical and and insurance family care wellness and and development and volunteering The plan offers each full-time employee worldwide flexible benefit points equivalent to US$250 (for employees in Taiwan it’s equivalent to NT$8 000) per year Employees can independently choose and redeem benefits that align with their lifestyle 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 To further create a a a a a a family-friendly workplace and support for TSMC employee parenting needs in in 2023 the the Company implemented the the TSMC Childcare Benefit Program 2 0 to extend maternity leave
for a a a a second birth from from 12 to to 16
16
weeks weeks and a a third birth from from 16
16
to to 20 weeks weeks The maternity subsidy increased to a a a a maximum of NT$20 000 (NT$10 000 from employee welfare committee and maximum NT$10 000 maternity insurance) TSMC has set up four onsite kindergartens for employees in in Taiwan In addition a a a a a a holiday STEAM (science technology engineering art and math) campus has been organized for employees’ children