Talent Retention and Diverse Welfare : Taiwan Business Bank

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Sustainability

Society

Talent Retention and Diverse Welfare

The Bank’s Remuneration Policy Employee Salary and Benefits Employee Welfare Measures Retirement Life Assurance

The Bank’s Remuneration Policy

In order to attract and retain outstanding financial talents, and to share with employees the operational results of the Bank, the Bank has stipulated in the Article of Association of the Bank that, shall there be profits of the year and except for retaining the remuneration amount for losses from previous years, the Bank shall allocate 1% to 6% as employee's remuneration. For the year of 2024, the remuneration paid to employees was NT$901,323 thousand.

In addition, in order to promote the sustainable development of the Bank, the Bank has established the "Directions for Salary Payment to Employees," "Directions for Payment of New Year, Festival, and Performance Bonuses," and "Directions for Payment of Remuneration to Employees" as part of its remuneration policy. By integrating the performance of individuals, units, and the entire Bank, and after making an evaluation based on the Bank's "Directions for Employee Audit", "Directions for Performance Audit," and "Directions for Administrative Incentives for Performance Audit," the Bank provides a reasonable and competitive remuneration system, which includes bonuses linked to the Bank's financial performance indicators, such as pre-tax net profit achievement rate, return on assets, return on equity, NPL ratio, and coverage ratio, as well as individual performance evaluation results. In addition, the Bank uses the employee year-end performance evaluation results as a criteria for salary increase.

Those who have obtained relevant certificates (financial technology knowledge test, corporate governance basic competency test, occupational safety and health qualifications, low carbon/ community planners in various counties and cities, Sustainable Finance Certificate, etc.) will be given bonus points for promotion or included in the qualifications for promotion so as to encourage employees to pass the tests. The Bank also promoted the "Financial Technology (Digital) Knowledge Test" program and set assessment and challenge goals to popularize digital finance.

Remuneration of the Senior Management

Regarding the remuneration of Directors of the Bank, the Article of Association has provided that, shall there be profits of the year and except for retaining the compensation amount for losses from previous years, the Bank shall allocate no more than 0.6% as the remuneration of Directors. The Shareholders' Meeting authorized the Board to determine the payment for such remuneration according to the standards in the industry, the respective performance of Directors, the performance of corporate operations, and the results of the performance assessment by the Board. Relevant performance assessment was proposed at the meeting of the Remuneration Committee for discussion and was submitted to and approved by the Board meeting. Regarding the remuneration for Independent Directors, the Board shall determine a reasonable remuneration different from that of the general directors according to the relevant standards within the industry. Except for the monthly fixed remunerations payment, such directors shall not receive the director remuneration specified in the Article of Association. For losses incurred to the Bank resulting from dubious acts of the Directors, the Audit Committee shall exert control and supervision on the existing and potential risks, and impose necessary punishment according to relevant laws and regulations.

The approval procedures for the remuneration of the President and the senior management shall be based on relevant requirements of "Directions for Salary Payment to Employees," "Directions for Payment of New Year, Festival, and Performance Bonuses" "Directions for Procedures." Such remuneration shall be implemented and paid after an assessment of performance based on the "Directions for Employee Audit," "Directions for Performance Audit," and "Directions for Administrative Incentives for Performance Audit" of the Bank, with consideration to the general standard within the industry. Remuneration includes salary, management allowance, various bonuses, lunch allowance, and pension and separation pay. The remuneration structure is divided into fixed remuneration and variable remuneration. Furthermore, the emuneration and relevant performance assessment of the Bank's President and the senior management shall be proposed at the meeting of the Remuneration Committee for discussion annually, and the results thereof shall be submitted to the Board for approvals.

The ratio of the President’s total annual compensation to the median employee compensation in 2024 was 4.83.

The ratio of the percentage increase in total annual remuneration of the highest-paid individual to the percentage increase in the median total annual remuneration of all other employees (excluding the highest-paid individual) in 2024 was 0.7

Employee Salary and Benefits

In response to changes in government laws and regulations and the needs of TBB's business operations, the Bank adjusts and revises relevant regulations in a timely and appropriate manner to meet the needs of TBB employees. TBB has established minimum salary standards (basic salary), and the salary of employees is paid in accordance with "Taiwan Business Bank Employee Salary Payment Guidelines".Salary Payment Guidelines''. Salaries are reviewed annually to ensure equal pay for employees with the same job grade, which does not differ by gender.

TBB complied with the laws and regulations and insured for the Labor Insurance, National Health Insurance, and provision of retirement pension for its employees. It also organizes health inspections for employees regularly, provides discounted group medical insurance and casualty insurance, and enabling employees to exert their talents at work worry-free.

Ratio of employee salary by gender at important business premises [1]

Ranked Grade 10 or above [3] (including Specialists, Managers, Deputy General Managers, General Managers, etc.)

Gender	Number of People	Percentage of average salary per person [2]
Male	831	49.76%
Female	735	50.24%

Ranked Grade 9 or below [4] (including Assistant Officers, Banking Officers, Senior Clerks, Clerks, Stationed Guards, etc.)

Gender	Number of People	Percentage of average salary per person [2]
Male	1,599	51.67%
Female	2,415	48.33%

Notes:

Units of TBB refer to departments of the head office and the branches.
Example: 49.76% of ''average salary per person for male'' for employees ranked grade 10 and above = [average salary for male/ (average salary for male + average salary for female)] for that grade category.
Gender pay ratio - Female: Male = 1: 0.99
Gender pay ratio - Female: Male = 1:1.07

Ratios of standard entry level wage at important business premises [1] compared to local minimum wage

Item	Entry-level personnel ranked between Grade 5 and 7
Starting salary for entry-level personnel [2]	Between NT$38,800 and NT$55,300
Statutory minimum salary [3]	NT$27,470
Ratio	Between 141.24% and 201.31%

Notes:

Units of TBB refer to departments of the head office and the branches.
There is no gender-based differences in the starting salary for entry-level personnel of TBB.
Minimum monthly wage at December 31, 2024.

Number of full-time non-managerial employees and their average and median salaries

Item	2023	2024	Growth Rate
Number of non-managerial full-time employees (persons)	5,133	5,225	1.79%
Average salary of non-managerial full-time employees (NT$1,000)	1,279	1,393	8.91%
Median salary of non-managerial full-time employees (NT$1,000)	1,132	1,238	9.36%

TBB follows a universal pay system. Employee salaries are determined according to the ''Taiwan Business Bank Employee Salary Payment Guidelines''. Salaries are reviewed annually to ensure equal pay for employees with the same job grade, which does not differ by gender.

Gender pay equity analysis

Item	Average gender ratio (100% for female)
Senior Management	Salary	100：98.47
Senior Management	Salary and bonuses	100：99.13
Management	Salary	100：96.75
Management	Salary and bonuses	100：97.07
Non-management	Salary	100：106.44
Non-management	Salary and bonuses	100：107.68

Gender pay gap

Item	Gender pay gap 2024 (%)
Average employee hourly wage [1]	7.67%
Median employee hourly wage [2]	14.09%
Average employee bonus [3]	10.73%
Median employee bonus [4]	14.68%

Notes:

Average employee hourly wage = (Average hourly wage for men - Average hourly wage for women)/Average hourly wage for women * 100%.
Median employee hourly wage = (Median hourly wage for men - Median hourly wage for women)/Median hourly wage for women * 100%.
Average employee bonus = (Average bonus for men - Average bonus for women)/Average bonus for women * 100%.
Median employee bonus = (Median bonus for men - Median bonus for women)/Median bonus for women * 100%.

Number of Employees Reinstated from Unpaid Parental Leave and Retention Rate in 2024

Item	Male	Female	Total
a.Total number of employees eligible for parental leave	149	247	396
b.Total number of employees on parental leave	16	132	148
c.Number of employees reinstated from unpaid parental leave in 2024	11	62	73
d.Number of employees that should be reinstated from unpaid parental leave in 2024	12	68	80
e.Number of employees reinstated from unpaid parental leave in 2023	11	52	63
f.Number of employees who have worked for one year after reinstatement from unpaid parental leave in 2023	10	48	58
Rate of reinstatement after parental leave = c/d	91.67%	91.18%	91.25%
Retention rate after parental leave = f/e	90.91%	92.31%	92.06%

The total number of employees eligible for parental leave is the number of employees with a child aged 3 or below (born after December 31, 2021) as of December 31, 2024.

Employee Welfare Measures

The employees of the Bank enjoy comprehensive welfare measures so that employees can enjoy all aspects of welfare measures after work. We seek to create an excellent work environment and improve work efficiency. The Bank's employee welfare measures are listed as follows:

Implementation of Welfare Measures

A.Employee Insurance

Description	Group insurance: : The Bank’s Employee Welfare Committee takes out a one-year group life insurance policy for all employees, the cost of which will be fully covered by the welfare fund of the Employee Welfare Committee. In case of on-the-job casualty, the insurance claim will be NT$1,000,000; in case of critical illness, a partial payment of NT$100,000 will be paid first. Group accident and hospitalization insurance:TBB is currently covered by Cathay Life Insurance Company at preferential rates for the Bank's employees and their dependents. In addition to the employees themselves, their parents, spouses and children can be insured. Inpatient medical coverage is available in either daily or pay-as-you-go type. Accident on duty insurance: We insure all of our employees with an accident on duty insurance coverage of NT$3 million. For those who are injured or die in the line of duty, they can apply for compensation from the insurance company
Implementation Results in 2024	Claims for regular group life insurance for employees Application Period: Sep. 2023 to Aug. 2024 Number of claimed cases: 17 cases Claimed amount: NT$5,200,000

Description

Group insurance: : The Bank’s Employee Welfare Committee takes out a one-year group life insurance policy for all employees, the cost of which will be fully covered by the welfare fund of the Employee Welfare Committee. In case of on-the-job casualty, the insurance claim will be NT$1,000,000; in case of critical illness, a partial payment of NT$100,000 will be paid first.
Group accident and hospitalization insurance:TBB is currently covered by Cathay Life Insurance Company at preferential rates for the Bank's employees and their dependents. In addition to the employees themselves, their parents, spouses and children can be insured. Inpatient medical coverage is available in either daily or pay-as-you-go type.
Accident on duty insurance: We insure all of our employees with an accident on duty insurance coverage of NT$3 million. For those who are injured or die in the line of duty, they can apply for compensation from the insurance company

Implementation Results in 2024

Claims for regular group life insurance for employees

Application Period: Sep. 2023 to Aug. 2024
Number of claimed cases: 17 cases
Claimed amount: NT$5,200,000

B.Employee Welfare Committee

Description	0.5% of the employee's monthly salary is deducted from the welfare fund, and 0.15% of the operating income is allocated to the Employee Welfare Committee to coordinate the use of the employee's welfare. Scholarships for the children of employees. Sickness relief for employees, as well as their spouses and children. Insured a year of regular group life insurance. Issued on-the-job welfare funds for the three major festivals every year. Childbirth subsidies: Starting from 2018, each child was subsidized with NT$5,000. In addition, starting from May 1, 2024, the Bank has increased the childbirth subsidies for employees as follows: NT$95,000 for the first child, NT$145,000 for the second child, and NT$245,000 for the third child and above.
Implementation Results in 2024	The Bank provided scholarships for a total of NT$259,000. A bonuse of NT$16,000 per active employees was provided for three important Chinese holidays. Regular one-year term group life insurance was provided to 5,482 persons on September 1, 2024. The Employee Welfare Committee and the Bank provided childbirth subsidies to 115 persons, totaling NT$1.345 million in 2022; provided childbirth subsidies to 111 persons, totaling NT$3.96 million in 2023; provided childbirth subsidies to 137 persons, totaling NT$12.015 million in 2024.

Description

0.5% of the employee's monthly salary is deducted from the welfare fund, and 0.15% of the operating income is allocated to the Employee Welfare Committee to coordinate the use of the employee's welfare.

Scholarships for the children of employees.
Sickness relief for employees, as well as their spouses and children.
Insured a year of regular group life insurance.
Issued on-the-job welfare funds for the three major festivals every year.
Childbirth subsidies: Starting from 2018, each child was subsidized with NT$5,000. In addition, starting from May 1, 2024, the Bank has increased the childbirth subsidies for employees as follows: NT$95,000 for the first child, NT$145,000 for the second child, and NT$245,000 for the third child and above.

Implementation Results in 2024

The Bank provided scholarships for a total of NT$259,000.
A bonuse of NT$16,000 per active employees was provided for three important Chinese holidays.
Regular one-year term group life insurance was provided to 5,482 persons on September 1, 2024.
The Employee Welfare Committee and the Bank provided childbirth subsidies to 115 persons, totaling NT$1.345 million in 2022; provided childbirth subsidies to 111 persons, totaling NT$3.96 million in 2023; provided childbirth subsidies to 137 persons, totaling NT$12.015 million in 2024.

C.Physical Examination

Description	Physical examination provided to employees is better than the law. Managers have one day of official leave per year to visit hospitals cooperating with TBB for physical examination subsidized by the Bank. Other employees regardless of age receive free health checkup every 2 years. Family members of employees can also participate in physical examination at their own costs. Health consultations with visiting physicians. Health education, health guidance, health consultation and emergency treatment provided by labor health service nurses Government-funded influenza vaccinations.
Implementation Results in 2024	Physical examination was provided to a total of 4,834 employees, and provided once a year to a total of 132 managers. Irregularities found in these exams were managed and followed up with health advice and physical or mental care. A total of 405 consultations were made by visiting physicians and 41 follow-ups by nurses. Assistance was provided 3,663 times to employees in health consultation and education, body temperature monitoring, and blood pressure and other injury/illness management. A total of 137 employees at the head office and the Chongqing South Road building were vaccinated.

Description

Physical examination provided to employees is better than the law. Managers have one day of official leave per year to visit hospitals cooperating with TBB for physical examination subsidized by the Bank. Other employees regardless of age receive free health checkup every 2 years. Family members of employees can also participate in physical examination at their own costs.
Health consultations with visiting physicians.
Health education, health guidance, health consultation and emergency treatment provided by labor health service nurses
Government-funded influenza vaccinations.

Implementation Results in 2024

Physical examination was provided to a total of 4,834 employees, and provided once a year to a total of 132 managers. Irregularities found in these exams were managed and followed up with health advice and physical or mental care.
A total of 405 consultations were made by visiting physicians and 41 follow-ups by nurses.
Assistance was provided 3,663 times to employees in health consultation and education, body temperature monitoring, and blood pressure and other injury/illness management.
A total of 137 employees at the head office and the Chongqing South Road building were vaccinated.

D.Consolation payments for the three major festivals

Description	TBB provides consolation payments for the three major festivals to retirees, employees voluntary retired at the age of 60 or above, and family of deceased employees.
Implementation Results in 2024	A total of NT$9,270 thousand was issued to the retired employees and family of deceased employees as the consolation payment for the three major festivals in 2024

E.Cafeteria for employees

Description	Provide affordable lunch meals with good value for employees to enjoy.
Implementation Results in 2024	The cafeteria for employees at the Head Office was served by a caterer to provide lunch at a special price and serve seasonal meals during major festivals

F.Favorable deposit and loan rates for employees

Description	Except for employees in the securities business who are not entitled to favorable deposit rates, all other employees are entitled to favorable deposit and preferential interest rates for housing/consumer loans.
Implementation Results in 2024	A loan amount of NT$3.654 billion for employees was newly added in 2024.

G.Non-smoking workplace

Description	The non-smoking signs are posted at the entrances of all business locations (including ATM entrances) to promote the concept of smoking cessation and to provide a smoke-free workplace environment for employees.
Implementation Results in 2024	Continued the implementation.

H.Welfare for child care

Description	Contracted with several kindergartens to provide preferential childcare services to our employees, and set up a breastfeeding room at our Head Office to create a friendly workplace environment.
Implementation Results in 2024	Signed special contracts with 4 kindergartens to provide child care benefits such as registration fees and educational materials for our employees in 2024.

I.Vacation regulations superior than the law

Description	The guidelines of leaves for employees are clearly defined. All leaves of absence are revised in accordance with changes in the law. Paid maternity and parental leave (for primary caregivers): TBB provides 58 days of paid maternity leave (approximately 8 weeks and 2 days), and 26 weeks of parental leave at 80% of the insured salary over 6 months, for a total of 34 weeks and 2 days of parental leave, which is superior to the statutory paid maternity leave. Paid prenatal care and parental leave (for non-primary caregivers): TBB provides 8 business days of paid prenatal care and parental leave (approximately 2 weeks), and 26 weeks of parental leave at 80% of the insured salary over 6 months, for a total of approximately 28 weeks of parental leave, which is superior to the statutory paid maternity leave. Ordinary sick leave, bereavement leave, physiological leave, short-term pregnancy (less than three months) maternity leave, paid family care leave89, and maternity leave are superior to government regulations.
Implementation Results in 2024	TTBB approved 568 family care leaves in 2024 with a total of 597.75 days. Among them, there are 342 cases totalling 374.5 days for female employees, and 226 cases totalling 223.25 days for male employees. According to the gender ratio of approved days, 62.65% are female and 37.35% are male. Employees who registered their marriage on or after September 3, 2024 may apply for extension of the marriage leave deadline.

Description

The guidelines of leaves for employees are clearly defined. All leaves of absence are revised in accordance with changes in the law.
Paid maternity and parental leave (for primary caregivers): TBB provides 58 days of paid maternity leave (approximately 8 weeks and 2 days), and 26 weeks of parental leave at 80% of the insured salary over 6 months, for a total of 34 weeks and 2 days of parental leave, which is superior to the statutory paid maternity leave.
Paid prenatal care and parental leave (for non-primary caregivers): TBB provides 8 business days of paid prenatal care and parental leave (approximately 2 weeks), and 26 weeks of parental leave at 80% of the insured salary over 6 months, for a total of approximately 28 weeks of parental leave, which is superior to the statutory paid maternity leave.
Ordinary sick leave, bereavement leave, physiological leave, short-term pregnancy (less than three months) maternity leave, paid family care leave89, and maternity leave are superior to government regulations.

Implementation Results in 2024

TTBB approved 568 family care leaves in 2024 with a total of 597.75 days. Among them, there are 342 cases totalling 374.5 days for female employees, and 226 cases totalling 223.25 days for male employees. According to the gender ratio of approved days, 62.65% are female and 37.35% are male.
Employees who registered their marriage on or after September 3, 2024 may apply for extension of the marriage leave deadline.

Long-term Incentives

Employee Stock Ownership Trust Program

Starting from 2019, the Bank has inaugurated the "Employee Stock Ownership Trust" program, which provides formal employees with the option to participate in the stock ownership trust program according to their personal preference, and the Bank provides fixed bonuses every month to allow employees to share the benefits of the Bank's business growth or even stock price increase through long-term stock ownership, so as to strengthen team building and increase the employee retention rate

Implementation Results in 2024

Year	Number of people with membership qualification (persons)	Number of members (persons)	Percentages of memberships (%)
2022	5,207	4,967	95.39
2023	5,230	5,101	95.53
2024	5,343	5,241	98.09

Retirement Life Assurance

Retirement System

With regard to the sources of expenditures of retirement benefits, TBB processes the retirement of employees in accordance with the "Employee Retirement, Compensation and Severance Guidelines" and the "Collective Bargaining Agreement" signed between TBB and the Union. Employees' retirement is processed in accordance with the Guidelines. In addition, in order to activate human resources, a regular preferential retirement project is implemented, and additional retirement incentives are issued to applicable employees. Retirement matters related to employees are handled in accordance with the Labor Standards Law and other relevant regulations. To pay for the pension of employees eligible for the old labor insurance retirement system, TBB allocates a certain percentage of the employees' salary each month to the labor pension reserve which is deposited in a dedicated account in a financial institution designated by the government. The fund is kept and used by the competent authority.

TBB established the Labor Retirement Reserve Supervision Committee to supervise the use and allocation of the retirement reserve. For employees eligible for the new labor insurance system, TBB allocates the due pension based on the allocation rate each month and deposits the amount in the dedicated personal pension account at the Bureau of Labor Insurance. In addition, employees that meet related conditions are eligible for retirement benefits including favorable deposit interest rate for employees, favorable deposit interest rate for up to NT$6 million based on the years of service, and consolation payments for three festivals. TBB provides consolation payments for three festivals to retirees, employees voluntary retired at the age of 60 or above, and family of deceased employees every year. In 2024, the consolation payments totalled NT$9,270,000, continuing to care for retired employees

Implementation of Pension Allocation

For employees eligible for the new labor insurance system, TBB allocates the due pension based on the allocation rate (6%) each month and deposits the amount in the dedicated personal pension account at the Bureau of Labor Insurance. To pay for the pension of employees eligible for the old labor insurance retirement system, TBB allocates a certain percentage (6.57% in 2024) of the employees' salary each month in accordance with the Labor Standards Law to the labor pension reserve which is deposited in a dedicated account in a financial institution designated by the government. According to the actuarial evaluation report on the employee pension benefit plan for 2024 submitted by the Mercer (Taiwan) Ltd., the defined benefit cost recognized in profit or loss was NT$148,233,000 in 2024. As of the end of 2024, the balance of the labor retirement reserve account was NT$4,794,956,207.