Succession Planning

Essential for Business Sustainability and Talent Development

Succession planning is a key element of business sustainability. The establishment of an effective training program to cultivate management talent can safeguard the company against potential financial losses from unforeseen changes in the industry, identify gaps between the target skillsets and those of the existing work force, meet human resource needs, motivate employees by providing a clear career path, retain top talent, and develop talent with multiple skillsets for key positions that require a broad range of professional skills.

The company’s succession management training program is as follows:

• A successor shall demonstrate the following characteristics: exhibits integrity and honesty; values commitments and innovation, earns the trust of clients, shareholders and stakeholders; identifies with the company’s corporate values; possesses high level of professionalism; and possesses the capability to undertake the responsibilities and perform the functions necessary for that leadership role.

• The senior management comprising of board directors, presidents and senior vice presidents play important roles and are key decision-makers in the company, and these positions require highly specialized training strategies in areas that cover management skills, professional skills, personal development and job rotation. Each of these areas can be covered as a module lasting between two to three years. The company will choose candidates from among these potential pool of management trainees, to fill the positions of the future chairman, CEO and other senior level management.

• For CEO succession planning, the Board of Directors, led by the chairman, periodically reviews the succession program and continuously observes and identifies suitable candidates among outstanding senior executives who demonstrate leadership potential. The key criteria for CEO successors include the candidate’s commitment to responding to evolving customer and market needs, commitment to sustainable development, commitment to furthering the company’s leadership in technological advancement, leadership and communication skills, relevant experience and personal attributes, and a global perspective. Candidate selection shall also take into account both current and future business strategies and the company's culture, in order to align the goals of the existing leadership team with those of shareholders and stakeholders. The Chairman and Board shall ensure that the CEO succession plan is aligned with the company’s long-term development strategy. During the succession process, the Human Resources Department shall be responsible for administering related procedures to ensure fairness, transparency, and compliance with company policies, culture, and the expectations of the Board and leadership team.

• In addition to planned succession, the succession plan also includes procedures for unplanned or emergency CEO replacements. These procedures shall be periodically reviewed and updated by the Board of Directors to ensure alignment with the company’s evolving needs. This allows the company to maintain sustainable and stable operations, ensures strategic continuity, and minimizes the impact of unforeseen events on business operations.

• In addition to selecting candidates who identify with our corporate values, the continuing education programs for board directors and key management positions of the company and its major subsidiaries shall be established in accordance with the following procedures and steps:

  1. obtain commitment to the program
     

  2. review of the entire current staff
     

  3. evaluation of candidates’ performance
     

  4. analysis of current and future HR needs
     

  5. assessment of candidates’ potential
     

  6. establishment of an appropriate plan for training and talent cultivation
     

  7. evaluation of program effectiveness