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Sustainability Governance
Shin Kong Financial Holding (SKFH) established the Corporate Social Responsibility Committee (CSR Committee) in December 2017, supervising and managing the overall corporate social responsibility of SKFH and its subsidiaries. In December 2018, the committee has been promoted to a functional committee directly under Board of Directors, to strengthen the sustainability development. The CSR Committee was renamed as Corporate Sustainability (CS) Committee in 2020. Two meetings of the SKFH CS Committee were convened in 2023, and the attendance rate of the members is 100%. The CS Committee reported the corporate sustainability performance and future plans, as well as the corporate governance and integrity implementation status.
The CS Committee oversees a Management Committee. The President of the Company serves as the convener of the Management Committee and the Presidents of subsidiary companies serve as members of the Management Committee. They are responsible for the formulation, promotion and supervision of sustainable business strategies. The Management Committee includes seven execution teams which are responsible for developing and executing related projects. In addition, to encourage all employees to jointly implement sustainable business practices, integrate Environmental, Social, and Governance(ESG) concepts into daily operations, and link them with corporate strategies to create profits and shape a sustainable corporate culture, SKFH formulated the "Incentive Program for Sustainable Action Proposals" in 2020.
ESG Ranking
From 2021 to 2023, SKFH has been continuously included in the Dow Jones Sustainability Index (DJSI) for World Index. In 2023, SKFH even been included in DJSI Emerging Markets Index, becoming a sustainable leader in the global insurance industry. Additionally, SKFH has achieved top 20% rankings in the stock exchange’s Corporate Governance Evaluation for eight consecutive years.
Remuneration of Directors and Managers
The amount of compensation received by Directors shall be determined by the Board of Directors according to the contribution of the individual and extent of involvement in the Company's operations, taking into account the general compensation standards within the industry. The Board of Directors shall set fixed compensation and an attendance fee for each board meeting and each functional committee meeting for Independent Directors who shall not participate in the Company's earnings distribution.
To link financial performance to bonuses, the annual performance bonus and long-term incentive bonus for the President and senior executives are effectively connected to the Company' s business performance and the President’s and senior executives' personal performance. Annual performance indicators are set according to the Company's operating and development strategies, and the indicators are classified into financial ones and non-financial ones. The annual compensation for the Company’s President and senior executives shall be determined by referring to the general level in the industry and referring to the achievement of the Company’s performance goals and individual performance and contribution in the current year. In addition to fixed compensation, the major compensation is annual performance bonus (including the share trust awards for senior executives), long-term incentive bonus and compensation to employees. The 2023 annual remuneration of the SKFH President, was 10 times the employee average, or 12 times that of the employee median.