TSMC announces hefty pay raise plan
In light of robust market recovery, Taiwan Semiconductor Manufacturing Co. (TSMC) recently announced it will comprehensively raise employees’ base salary by an average of 15% from January of 2010 and pay bonus of 2009 and 2010 next year.
Chairman and chief executive officer of the world’s No.1 pure foundry, Morris Chang, said the company`s business results will be excellent in 2010, thus, the company’s staff will receive much higher pay next year than they do in 2009 even if staff number increases.
He added that talents are the company’s most important assets and the company had worked on the latest hike and bonus project for a while.
Some industry executives consider the lucrative pay hike as the company’s trick of luring talents away from competitors, which they expect would soon offer pay hikes to retain their talents.
Industry watchers estimate the pay hike project will cost TSMC an additional NT$1.2 billion (US$37 million at US$1:NT$32) in salary spending and the bonus pay will cost it around NT$6.5 billion (US$203 million) throughout 2010. Staff bonus accounts for 15% of the company`s after-tax net income.
The company will hand out 2009 bonus in February 2010. Usually, the company distributes bonus in July or August after calculating annual net income in the previous year. Chang said early pay will eliminate speculations among employees that bonus pay is intentionally delayed.
Some senor employees said the hike is actually insignificant as the company’s base salary is now only around two folds above the averages paid by the company’s rivals, a drop from a gap of five to six folds in early days.
More Info: http://www.taiwanheadlines.gov.tw/ct.asp?xItem=174834&CtNode=39
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