Evaluation Criteria and Process
- The Board of Directors establishes performance goals for the Chief Executive Officer and provides performance evaluations linked to strategic plans and annual work plans. This process supports appropriate consideration of compensation and incentive measures, in both short- and long-run, for the CEO on an annual basis.
- The Compensation Committee provides recommendations regarding the CEO’s performance indicators, reflecting both short-term and long-term business directions, as well as key objectives assigned by the Board. The Committee plays a role in evaluating the CEO’s performance during both the first and second half of the year and provides recommendations to the Board on these matters.
- The performance evaluation criteria for the Chief Executive Officer can be divided into 6 categories, consisting of Group Strategy, Funding Strategy, Financial Performance, People & Culture, Stakeholder Relationships, and Commitment to ESG. Each category has its own specific weighting.
- For the integration of important ESG issues as part of the annual performance indicators for the Chief Executive Officer, the focus will be on performance in various aspects across environmental, social, and governance dimensions, which align with the organization’s materiality assessment and sustainability objectives. Examples of ESG indicators include employee engagement levels, number of significant governance complaints, number of cybersecurity incidents, reduction in GHG emission, and number of work-related fatalities, among others.
- In addition, the Chief Executive Officer’s performance in the past year was also included as an agenda item for the non-executive directors’ meeting without management’s presence. In 2024, the Board organized one such meeting. After the meeting concluded, the Board conveyed the feedback received from the meeting to the Chief Executive Officer for acknowledgment, to be used for further development or improvement in various areas.