Salary and Bonus

100% of Employees in TCC Enjoy Quarterly and Performance Bonuses

TCC Group Holdings adheres to the principle of sharing operational performance and has formulated a compensation policy where employee salaries are determined based on their performance, job responsibilities, and other comprehensive factors. Discrimination based on personal characteristics such as gender (including sexual orientation), race, class, age, marital status, language, ideology, religion, political affiliation, birthplace, appearance, facial features, or disabilities is strictly prohibited.

Executive compensation linked to ESG goals

To actively fulfill its sustainability commitments, TCC links the compensation of senior management to ESG performance targets, incentivizing the management team to continuously improve in environmental protection, social responsibility, and corporate governance. Additionally, specific sustainability targets are set for the CFO, the Chief Procurement Officer, and the procurement department based on key indicators, thereby integrating sustainability performance with compensation.

Indicator Dimension	Indicator Content	Proportion	Corresponding Material Topics
Personal Performance (30%)	Task Performance and Goal Attainment	30%
	AI Innovation and Application Effectiveness		R&D Innovation
	Legal Compliance and Risk Prevention		Legal Compliance
	Assessment of Long-term Risks		Legal Compliance
	Talent Cultivation		Talent Cultivation and Development
	Enhancing Employee Capabilities and Qualities
	Fostering a Global Mindset
Financial Performance (30%)	Return on Assets (ROA)	7.5%	-
	Return on Equity (ROE)	7.5%
	Net Profit After Tax	7.5%
	Growth Rate	7.5%
Sustainability and Climate (40%)	SBT Carbon Reduction Target Progress	10%	Climate Action and Net-zero Emissions
	Alternative Fuel Usage	10%	Co-processing of Renewable Resources
	Green Electricity Usage	5%	Green Energy and Energy Storage
	Sustainable Supply Chain Management Practices	5%	-
	Percentage of Sales from Low-carbon Products	5%	Sustainable Products and Services
	Zero Penalties for Water Resources	5%	Pollution Prevention Management Water Resource Management
	Zero Penalties for Occupational Safety	5%	Occupational Health and Safety
	Female Employee Ratio	5%	-

Performance Bonuses

Incorporate risk and sustainability management-related indicators into the assessment criteria, integrating the assessment results with corporate governance, overall operations, and sustainable development

Environmental Indicators：environmental protection and emissions control, progress on achieving SBT targets
Social Indicators：OHS
Governance Indicators：quality, information security and anti-bribery/corruption, etc.

Quarterly Bonus

In 2018, Taiwan Cement introduced a quarterly bonus system to enable employees to share in company achievements. Besides measuring quarterly EPS and key performance indicators, the system also incorporates each factory's progress towards achieving carbon intensity reduction targets set to meet the company's commitment to carbon neutrality by 2050. This integration of sustainability performance into company operations enhances overall sustainability efforts.

Type of Performance Appraisal

To align employees' work goals with the company's development strategy, a fair and equitable performance appraisal system has been established. This system integrates quantitative job objectives with qualitative competency behaviors, ensuring a comprehensive link between the company's overall operational profitability and individual employee performance

Type	Implementation	Frequency
Management by objectives	Direct supervisors and second-level managers of all employees conduct preliminary and secondary evaluations, with assessment indicators consisting of 60% quantitative work objectives (including sustainable actions by all employees) and 40% qualitative competency indicators	At least yearly
Agile conversations	Departments hold regular monthly or weekly meetings to continue communication and encourage supervisors to proactively provide feedback on work situations during the quarterly assessment period.	At least quarterly
Multidimensional performance appraisal	General affairs, human resources, and finance colleagues at each plant, through assessments conducted by the plant and TCC Enterprise Group, ensure that the comprehensive assessment content covers performance in all aspects	At least yearly
Team-based performance appraisal	Conduct evaluations for cross-team or cross-business project working groups, and provide corresponding awards to encourage them	At least yearly