Performance evaluation of current year

Implementation of self-evaluations by the Company’s Board of Directors in 2023

In order to firmly implement corporate governance and improve the functionality of the Board, the Company has established the performance goals to strengthen the Board’s efficiency and adopted the “Guidelines for Performance Evaluation of Board of Directors” in the 10th meeting of the sixth term of Board on November 21, 2016. In addition, as a mean to continuously improve the independence and effectiveness of the Board’s performance evaluation, the Company also adopted the amendments to the “Guidelines for Performance Evaluation of Board of Directors” in the 29th meeting of the sixth term of Board on January 30, 2018 and the 7th meeting of the seventh term of Board on October 28, 2019 to add the relevant procedures for the external performance evaluation of the Board and extend the scope of Board’s performance evaluation to the functional committees in accordance with the “Sample Template of Rules for Performance Evaluation of Board of Directors” issued by the Taiwan Stock Exchange Corporation. The rating scale of the self-evaluation was also changed from “Yes/No” scale to quantitative scale of “1 to 5” in the same amendments.

According to the Company’s “Guidelines for Performance Evaluation of Board of Directors,” the Board of the Company shall conduct the internal performance evaluation of the Board of Directors at least once a year, and the evaluation scope covers the performance evaluations of the Board, individual directors and functional committees. Moreover, since 2018, external professional independent institutions, experts or scholars have been brought in to conduct the external performance assessment on the Board at least once every three years as a mean to strengthen the independence and effectiveness of the Board’s performance evaluations.

(一) Cycle, Period, Scope, Method and Content of Board of Directors Self-assessment

(二) Board Performance Self-assessment Results

1. a. The Company completed the performance evaluation for the current year in accordance with the “Rules for Board of Directors Performance Assessments,” and the self-assessment results were subsequently reported to the Board of Directors’ meeting on March 11, 2024.
2. b. Performance self-assessment is presented in a rating scale from 1 to 5. The performance assessment rating scale is explained below:
   Number 1: Very poor (Strongly disagree) 2: Poor (disagree) 3: Neutral (Normal) 4: Good (Agree) 5: Excellent (Strongly agree).
3. Assessment results
   1.  Internal self-assessment of the Board:
       There were 45 items in the performance evaluation, and the average rating was between 4: Good (Agree) to 5: Excellent (Strongly agree).
   2. Self-assessment of individual board members:
      There were 23 items in the performance evaluation, and the average rating was between 4: Good (Agree) to 5: Excellent (Strongly agree).
   3. iii. Self-assessment of the functional committees:
      There were 24 items in the performance evaluation, and the average rating was 5: Good (Strongly agree).
   4. iv. The Board’s performance evaluation results of 2021 were disclosed on the Corporate Governance section of the Company’s website.

(三) Improvement and Recommendations

1. Directors should have a better understanding of the reports made by each department and review the performance of management team in order to grasp the Company’s operation and various disadvantageous trends and risks completely and promptly.
2. Planning and training competent director candidates to maintain the professionalism and experience.

Board’s Performance assessments for the past years