GOVERNANCE Corporate Governance

Based on the questionnaire scores, the three lowest-scoring dimensions were Compensation, Advocacy, and Development, in that order. Compared with industry peers, the three lowest-ranking dimensions were Advocacy, Compensation, and Collaboration, in that order.

Further analysis of these three dimensions identified External Competitiveness, Internal Equity, and Cross-Team Collaboration as the areas with relatively lower employee satisfaction. The Company prioritized the review and improvement of items for which employees provided specific feedback, as outlined below:

1. External Competitiveness: The average satisfaction score increased from 3.42 in the previous year to 3.52 this year. The Company participates annually in a compensation survey conducted by a professional consulting firm and regularly reviews its compensation levels. According to the survey results, the Company’s compensation levels did not significantly lag behind the market. In addition, the salary adjustment implemented in April this year exceeded the market P50 level. The Company will continue to review and enhance compensation for relatively lower-paid employees when determining salary adjustments or bonus allocations. Some employees also expressed different expectations regarding the way employee benefits are provided. The Company will review and optimize these practices where permitted under applicable laws and regulations.
2. Internal Equity: The average satisfaction score increased from 3.47 in the previous year to 3.55 this year. Employee feedback primarily focused on bonus allocation and subsidies for departmental gatherings. As greater weighting is assigned to certain key marketing and sales departments based on their achievement of profit targets, some employees in support functions perceived the arrangement as inequitable. Since bonus allocation is linked to individual performance, the Company will initially focus on reviewing and improving the subsidy arrangements for departmental gatherings.
3. Cross-Team Collaboration: The average satisfaction score increased from 3.45 in the previous year to 3.66 this year. Employee feedback indicated that cross-departmental communication may become less effective when departments have differing perspectives. Since July this year, the Company has added a monthly management communication meeting and a joint meeting for the marketing and sales departments to create more opportunities for cross-departmental communication. The Company has also begun developing communication training courses for all employees to strengthen positive communication practices and problem-solving and coordination skills, thereby facilitating smoother interactions across teams.

1. Cross-departmental collaboration: This includes aspects such as organizational communication, process review and improvement, and inter-team division of labor and cooperation. The Company will organize cross-functional coordination meetings to discuss process issues or areas with frequent communication conflicts. Additionally, one-day workshops and positive communication training (or experiential activities) will be held to enhance constructive interactions and mutual understanding of each team’s key responsibilities.
2. Process review and improvement: Departments will be asked to identify processes perceived as overly complex to assess whether simplification is possible. If simplification is not feasible, efforts will be made to strengthen communication and awareness of the importance and necessity of such procedures.
3. Development of a reward mechanism for senior employees: Plans will be initiated to establish a recognition and reward system to acknowledge the contributions of long-serving staff.