Corporate Governance

Organization and Operation of Corporate Governance

Corporate governance is the foundation of business operations. Qisda has a management team composed of experienced professional managers. Board members generally have the knowledge, skills and accomplishments necessary to perform their duties. With a sound organizational structure, sound corporate governance is implemented. From 2015, the Corporate Sustainable Development Committee is responsible for supervising and managing the promotion of the company's sustainable business strategy, and regularly reports to the board of directors on the implementation of the year in order to communicate with the directors on related issues.

Organizational Structure of Corporate Governance

 

ESG Committee

In order to smoothly conduct ESG affairs and ensure the communication for and responses to the stakeholders’ suggestions on our business, Qisda has integrated the relevant departments to form the ESG Committee. The President, Joe Huang, serves as the chairperson while the senior managers of relevant departments act as the committee members of different dimensions. The Chief Sustainability Officer serves as the vice chairperson and is responsible for establishing and planning matters related to corporate sustainable development. Moreover, the ESG unit coordinates, promotes and guides the implementation by the department concerned. 
 

ESG Committee convenes at least once a quarter. The Chairman and President preside over the meeting together to direct and supervise the senior managers. The committee members of different dimensions report the implementation status of the performance indicators and the progress of the corporate sustainable development relevant issues. Currently, the Committee monitors and discusses 51 indicators. It has held 75 meetings to date. Sustainability personnel and the personnel of each task force perform information and performance validation to ensure the consistency, completeness and accuracy of data.

• When any omissions are found, the data will be returned to the head of each department to complement and confirm the information. At the final stage, it should be disclosed after the approval of the ESG Committee. In addition, according to Qisda’s “Guidelines for Corporate Sustainable Development,” material topics of the year, sustainability performance and the management results of climate governance related issues are reported to the Board of Directors every year on a periodic basis.
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CEO Compensation

The compensation ratio of President Joe Huang to the average employee compensation is 12.4 times, and 10.8 times compared to the median employee compensation.

Under the deferral of bonus mechanism, 40% of the CEO’s short-term incentive is granted in the form of company shares purchased through the Employee Stock Ownership Trust (ESOT). These shares are held in custody within a trust account, with a percentage deferred allowing an annual vesting/withdrawal rate of 10%. The final remaining shares in the trust account may be claimed upon resignation or retirement.