Remuneration Policy

Remuneration Policy

Onshore Personnel

Shih Wei Navigation provides fair and market-competitive compensation to attract, retain, and motivate outstanding talents. We carry out an annual performance appraisal of all employees as the basis for bonuses distribution. The compensation of employees includes the salary (including the basic salary and meal allowance), performance bonus, festival bonus, and employee compensation.

Basic wage

The compensation of new recruits will be reviewed based on the employee’s previous work experience, competence, and the market condition of the applied position, which exceeds the basic wage stipulated in the Labor Standards Act and is not influenced by the employee's age or gender.

Employee Compensation

As prescribed in Article 32 of the Company’s Articles of Incorporation,
If the Company has earnings in the year (earnings distributed to employees and directors as compensations shall be deducted from the profit before tax), the earnings distributed as compensation to its employees shall not be less than 2% and no more than 5% to its directors; provided, however, that the Company shall have reserved a sufficient amount to offset its accumulated losses. The Company may issue profit sharing bonuses to employees of an affiliated company meeting certain conditions.

Salary Adjustment Mechanism

Adjust employee salaries with reference to the company's operating performance for the year, market salary levels and employee personal performance.

Equal Pay for Equal Work

Full-time employees of the Company, males and females, receive equal pay for equal work, regardless of gender, age, ethnic group, religion, political affiliation, and marital status.

Note:

1. Grassroots personnel: personnel holding the position under deputy section chief (exclusive)
2. Management: Supervisors excluding grassroots personnel and senior management
3. Senior management: Head of each department
4. Those still on the job in the Company as of December 31 2022 are all included in the statistics regardless of the seniority, professional skills, job content, and other factors
5. Calculated based on the fixed salary of December 2022.

The compensation of new recruits will be reviewed based on the employee’s previous work experience, competence, and the market condition of the applied position, which exceeds the basic wage stipulated in the Labor Standards Act.

Shih Wei Navigation discloses the salary information of all non-managerial full-time employees as prescribed by law, makes regular declaration and discloses such information on TWSE MOPS.

The ratio of the highest individual's annual total compensation to the median annual total compensation of employees for the year 2022

Note:

1. The annual total compensation ratio = Annual total compensation for the organization's highest paid-individual / Median annual total compensation for all of the organization's employees excluding the highest-paid individual
2. The change in the annual total compensation ratio = Percentage increase in annual total compensation for the organization's highest-paid individual / Median percentage increase in annual total compensation for all of the organization's employees excluding the highest-paid individual
3. Based on the disclosure requirements of the Taiwan Stock Exchange Corporation (TWSE), the company reports the "Information about salary of full-time employees who are not in a managerial position" as the statistical basis, revealing the annual total compensation of the highest-paid individual and the median salary of full-time employees

Sea Crews

The salaries are reviewed with the spirit of equal pay for equal work based on the job content, work experience, competence and certificates obtained. The calculation basis of the seafarers’ salaries is based on the standards of the International Transport Workers’ Federation (ITF), and will not differ due to difference in gender, age, ethnic group, religion, political affiliation, and marital status.

Each sea crew is entitled to various bonuses depending on different situations, such as the seniority/reinstatement bonus, bonus for cleaning cargo hold, opening and closing the hatch cover, deck/engine maintenance bonuses or bonuses for special achievement, and additional incentive bonuses approved by the Company’s Rewards and Disciplinary Committee.

The calculations of bonuses differ based on the sea crew’s seniority and job assignment, making it difficult to calculate the salaries and ratio of salaries.

Remuneration of Directors and Managers

The directors’ remuneration structure and policy have been established in accordance with the Articles of Incorporation and the Measures for the Remuneration of Directors and Managers. The directors’ performance indicators do not yet include the ESG performance. Except for the director(s) concurrently serving as the employee(s), no pension, severance pay, and various bonuses are provided, nor is there a clawback mechanism.