Execution Principles

  • Timely disclosure of material information
  • Checks and balances between the board and management
  • Setting the target share of independent directors on the board at a minimum of 40%
  • Audit Committee was established to ensure fair and independent financial oversight
  • Remuneration and Nomination Committee was established to strengthen corporate governance practices, promote a sound compensation system for directors and managers, and to select candidates for directorships
  • Adoption of a high cash dividend payout policy
  • Shareholders’ rights are guaranteed with the right to vote on all proposals at the annual general shareholders’ meeting or through an electronic voting system
  • Strict compliance with the Code of Ethics and Ethical Corporate Management Best Practice Principles and establishment of an internal audit mechanism

The Company’s corporate governance structure is composed of two committees: an Audit Committee and a Remuneration and Nomination Committee.

Audit Committee
The Audit Committee was set up in June 2008 to replace board supervisors, pursuant to provisions in the Securities and Exchange Act. The committee’s operation is bound by the “Audit Committee Charter” and its main responsibility is to assist the board in overseeing the following:
  • Integrity of the Company's financial statements
  • Independent auditors' appointment (termination) and integrity/performance
  • Internal risk controls
  • Company's compliance with legal and regulatory requirements
  • Company's existing and potential risks
Remuneration and Nomination Committee
The Remuneration and Nomination Committee, composed entirely of independent board directors, is bound by the “Remuneration and Nomination Committee Charter.” The committee is responsible for evaluation of the following matters:
  • Establish a policy, system, standard and structure for directors and managers’ compensation and review them periodically.
  • Decide compensation for directors and managers and carry out periodic evaluations
  • Finding, reviewing, and nominating candidates for directors

Metric for President (CEO) compensation

President’s performance and remuneration is reviewed by the Remuneration and Nomination Committee, and approved by the board meeting. Performance-based compensation of President’s annual salary is determined by a comprehensive evaluation of measurable metrics. The metrics include financial performances such as EPS、EBITDA、ROA、ROE、total shareholder return, and the non-measurable external perception metrics such as customer satisfaction, DJSI evaluation results and a set of CSR indicators. The time vesting period for variable President compensation is one year.

Taiwan Mobile implements appropriate disclosures to ensure shareholders have up-to-date information as a basis for their investment decisions. Taiwan Mobile provides key operation & financial information, BOD resolutions and CEO messages in a fairly distributed and timely manner.