Cathay FHC continues to move forward based on a customer-centric philosophy under the strategic vision of becoming "the leading financial institution in Asia Pacific". We will incorporate innovation into our core business activities, and endeavor to provide customers with better financial services through the use of new technologies. We seek to manage our risks while pursuing innovation and growth, and are committed to corporate sustainability and to safeguarding environmental and social interests. Cathay FHC has once more achieved outstanding business performance in 2018 with consolidated after-tax profit of NT$51.8 billion and earnings per share of NT$3.95. Our subsidiaries, Cathay Life and Cathay United Bank (CUB), were the primary contributors.
Cathay FHC continues to leverage our years of experience in providing financial services in Taiwan as we expand into China, Southeast Asia, and other overseas markets and increase our profits from overseas. We are focused on keeping our customers at the center of all we do, including incorporating innovation into our core business activities, and endeavoring to provide our customers with better financial services through the use of new technologies. We seek to manage our risk while pursuing innovation and growth. We are committed to corporate sustainability and to safeguarding environmental and social interests while improving our financial and operating performance.
Senior Executive Remuneration and Sustainable Performance
Cathay FHC implements performance management and pays remuneration in accordance with the Guidelines for Performance Management & Development of Senior Management and Guidelines for Remuneration of Senior Management, so as to develop a sound corporate governance system that encourages managers to fulfill their duty in improving Cathay’s long-term business performance, thereby accomplishing Cathay’s business strategies. For managers, Cathay has set financial indicators (e.g., after-tax common stock earnings per share (EPS), double leverage ratio (DLR), and Cathay FHC’s capital adequacy ratio), as well as non-financial indicators of risk management, compliance, and human resource development planning, based on the achievement of which manager performance is evaluated and remuneration paid.
Senior executive remuneration consists of monthly salary, performance bonus, and other benefits. The monthly salary shall be set at a level which reflects the responsibility, performance and skills of an individual manager, with reference to market standards; while performance bonuses are based on Cathay’s overall business performance and each senior executive’s personal performance of the current year. Cathay FHC establishes a long-term incentive program to provide senior executives with incentives to pursue long-term quality performance. For the President and certain senior managers, we defer the payment of 20% of their performance bonuses in the form of phantom stock for a period of 3 years, after which the bonuses shall be paid in accordance with relevant internal regulations. Should there be any major risk incidents that impact Cathay’s operations or reputation during this period, Cathay FHC shall not pay the bonuses, or shall recover appropriate amounts of paid bonuses under the payment deferral scheme. Other benefits shall be paid in accordance with relevant internal regulations.