Employee Care
FENC attracts top talents with competitive compensation package; retains high-performing employees with extensive remuneration system.
FENC regards employee health and welfare as its priority. While engaging employees through advanced hardware and equipment, the Company also supports them with a safe and friendly workplace as well as robust remuneration and welfare policies, helping them thrive for the long term.
FENC adheres to the principle of equal remuneration, committing to providing a remuneration system that is fair and reasonable. The salary structure consists of the base salary, performance bonus and year-end bonus supplemented with a comprehensive welfare system. With a performance-based remuneration system, employees’ compensation is closely associated with the individual and team performance. Meanwhile, the environmental, social and governance (ESG) aspects and the sustainable development goals have also been incorporated into the performance review indicators to motivate employees to strive for environmental protection, social responsibility and corporate governance while pursuing business growth.
Compensation
An analysis of salary levels across FENC's operating sites indicates that compensation in Taiwan, mainland China, Vietnam, and the United States remains competitive. A year after its expansion, which drove a surge in recruitment, the Himeji plant of FIGP entered a period of robust operations in 2025 and a phase of refining the course of talent management. Through promotion and performance-based compensation, senior employees who have contributed significantly receive prominent recognition as encouragement for taking on greater responsibilities and leading the team to higher growth. This strategy has noticeably optimized organizational efficiency and elevated the overall salary level. The remuneration policy at each FENC site is established based on local regulations and market conditions. Regular market salary surveys are conducted with adjustments made to remain competitive and create a working environment that is friendly and appealing.
Details regarding the average and median salaries of non-management full-time employees at FENC, as well as the year-over-year changes are available on the ESG Digital Platform of the Taiwan Stock Exchange Corporation’s Market Observation Post System.
The employee performance management appraisals is conducted annually. Based on the business operation as well as employee performance and competency, adjustments are made to salaries, bonuses and promotions. The review mechanism serves to inspire employee dedication and create a win-win by increasing both personal earnings as well as corporate growth.
↪More information：Salary Comparison to Market Level、Ratio of Salary and Salary Increase Between the Highest Salary and Median Salary
Performance Review and Incentive Systems
FENC has a robust performance management and incentive system in place, including a holistic ESG performance review framework that links ESG indicators directly with employee remuneration as substantial encouragement to motivate employees.
The remuneration policy for the Board members and managers is discussed during the Remuneration Committee meeting, which is convened by the independent Board members. The discussions are presented for Board approval and results are presented at the shareholder meeting. Please refer to Board Structure and Remuneration for details.
Compensation for executive levels above assistant vice president is based on corporate performance and the market average. In addition, the compensation is adjusted based on performance appraisal and factors in future operational risks. The Company does not offer signing or recruitment bonus for senior managers. Considerations for compensation of other employees include overall corporate and departmental performance; pay rates among listed companies; market survey provided by professional consulting firms; overall financial and management risks.
In addition, FENC has established a performance-linked compensation adjustment mechanism and clear performance appraisal procedures, supported by a performance-based incentive system designed to reward excellence and motivate employees and executives. Performance bonuses are adjusted based on monthly operating results and individual performance, with supervisors granted discretion to determine adjustments within a defined range (up to 30%). A malus mechanism is also incorporated to allow for bonus reductions where appropriate. Applicable to all employees, including CEO and executives, this mechanism forms an integral part of FENC’s performance management framework, strengthening the alignment between compensation and performance while promoting fairness and accountability. Stock options are not available for regular employees, and the Company policy does not include deferred or vested share options.
ESG-linked Executive Compensation
At FENC, the quest for corporate profits is balanced with its ESG performance to achieve sustainable development. To internalize a culture of sustainability from the top down, FENC is integrating the achievement in sustainability goals into the performance appraisal and reward system for executives, linking it to annual bonuses and salary adjustments. The annual management performance and outcome account for 70% of the yearly assessment, and sustainable operations and development account for 30%.
Assessment of the annual management performance and outcome is based on quantifiable results, such as revenues and financial performance, emphasizing responses to external environmental conditions, financial growth and risk control. Assessment of sustainable operations and development focuses on innovative technologies, green production, talent development and stakeholder engagement. The dual-track system allows the management team to balance the pursuit of current profits with FENC’s long-term competitiveness and sustainable value.
Linkage Between Annual Performance Appraisal Framework and Executive Compensation
考核項目 | 考核重點內容 | 薪酬連結機制 | |
Annual Management Performance and Results (70%) |
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Performance appraisals for executives are linked to annual bonuses and salary adjustments. Salary levels and bonuses are affected by:
Based on the achievement of annual financial, operational and sustainability targets | |
Sustainable Management and Development (30%) | Governance |
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Environmental |
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Socia |
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Sustainability Targets Linked to Executive Compensation
To affirm its commitment to sustainable governance, FENC has linked the progress of achieving seven major sustainability targets to the compensation of managers in charge of achieving the targets. The progress accounts for 5% to 10% of the performance appraisal for executives, including the president, chief operating officer and manager in charge, and also affects the fixed salary adjustment for the following year. Depending on the actual achievement rate, annual bonuses as high as 20% of employee compensation are awarded as incentives. The system has been reported to the Remuneration Committee to ensure the alignment of the compensation structure with FENC’s long-term development strategies.
ESG Category | Sustainability Targets | 2026 Targets | Corresponding Material Topic |
Environmental | Reduction in energy consumption per unit of production (%) (see note1) | ↓12.0% | Energy and Resource Management |
| Reduction in GHG gas emissions (Scopes 1 and 2) (%) (see note1) | ↓35% | Climate Strategies and Low Carbon Transition | |
| Revenue share of sustainable products (%) | 35% | Green Product | |
| Reduction in air pollutant emissions (%) (see note1) | ↓22.0% | Environmental Management | |
| Reduction in water withdrawal per unit of production (%) (see note1) | ↓31.0% | Energy and Resource Management | |
Social | Zero fires and chemical spills (number of incidents) | 0 | Operational and Occupational Safety |
| Number of community, engagement, exchange or non-profit events held or with FENC participation (number of events) | 40 | Community Relations (see note2) |
Note: |
Manager and Employee Performance Review System
Competency assessments, such as the behavioral assessment conducted annually at FENC, and additional evaluation tools are used as the means to appraise managers’ work attitudes and management capabilities, as well as the basis for development programs. The assessment covers seven indicators for leadership potential, including business acumen, risk-taking, perspective-taking, holistic thinking, propensity to lead, learning agility and passion for results, as well as seven indicators for leadership competency, which are communication, collaboration, logical thinking, execution, leadership, digital savviness and agility. The results are referenced for talent development, such as training, capacity building, job rotation and promotion.
FENC has a clear set of rules and regulations governing the performance review process to help employees excel in capabilities and performance. The review policy has also been established based on corporate and personal performance with transparency assured. ESG performance, which ranges from energy conservation, promotion of green business, R&D of green products, implementation of corporate governance and optimization of human resources, has been incorporated into the performance review. FENC provides a performance-driven bonus system to incentivize top-performing employees and senior executives. The performance review system covers 100% of permanent employees and does not include part-time employees and employees under one year of employment. The 2025 performance review reached a 100% completion rate among permanent employees.
At least once a year, FENC conducts the employee performance review, which encompasses managerial feedback, peer feedback and self-assessment. During performance interviews, employees are informed of career development opportunities and the outcome of the year-end performance review, which is taken into consideration for promotion and salary adjustments with an approximate range between 0% to 5% of the employee salary. Upon reviewing employee performance and competency, managers make the determination for salary adjustments, bonuses, promotion or termination of employment accordingly.
Performance Management Appraisals and Employee Development System
Job Performance and Regular Feedback System | All employees undergo KPI review. In the beginning of each year, employees set personal goals based on organizational performance, and the bonus is adjusted monthly based on personal performance. The bonus system brings communication opportunities to help. Employees may also express observations to supervisors during the monthly appraisal interview. The annual review will be based on achievement of goals, serving as a reference for salary and bonus adjustments as well as a formal mechanism to promote an open feedback culture. |
Competency and Employee Development Plan | Annual performance management appraisals are conducted by direct supervisors to evaluate the level of job competency employees demonstrated. The review also includes conversations on the employee development plan. The supervisor and the employee discuss personalized training needed to foster employee development, including on-the-job-training, job rotation and overseas assignment. |
Short-term Incentive
Incentive | Detail | Linked Indicator | Applicable Employee |
Performance Management Appraisals for Migrant Workers | Performance appraisals are determined monthly by supervisors based on attendance and production of Grade A products. Bonuses are awarded based on the results to boost job performance and employee retention. |
| Migrant workers in Taiwan |
Employee Compensation / Profit Sharing | According to the FENC Articles of Incorporation, 2% to 3.5% of profits from the current year should be distributed as employee compensation to share the Company’s success. |
| Employees without major demerits during the reporting year |
Bonus for Team-based Performance Appraisal | Monthly team-based performance appraisal is conducted regarding material ESG topics. Based on the result, production bonuses as much as 20% of the monthly salary are awarded.
The management level receives bonuses for improving the management system, while bonuses for the rank-and-file employees are performance-based.
The incentives are designed to encourage sustainable practices at all units, including occupational safety, energy and carbon reduction, environmental protection, recycling and production optimization to fully embrace sustainable practices at FENC. |
| Management Level |
| Rank-and-file Employee |
Long-term Incentive
Employee Stock Ownership Plan (ESOP)
At FENC sites in Taiwan, employees with technical expertise as well as mid-level managers and above may participate in the employee stock ownership plan (ESOP), which purchases Company shares systematically with a 30% contribution from the Company. A trustee manages the shares and calculates the trust property equity. Upon the termination of employment, employees may redeem the investment in the form of stocks or cash. ESOP offers a long-term option for employee bonus and investment returns. In 2025, the number of employees enrolled in ESOP accounted for 97% of those who were qualified, indicating a high interest in participation.
Far Eastern Corporate Spirit Award and Far Eastern Energy Award
Since 2005, FEG has hosted the Far Eastern Corporate Spirit Award and Far Eastern Energy Award each year to encourage its subsidiaries and affiliates to submit projects, contributions or actions that demonstrate excellence and bring positive influence and motivation to the peers within the group. Exemplary employees are presented with medals and bonuses as acknowledgement.
