Director remuneration is administered in accordance with Avalue’s Articles of Incorporation and Remuneration Committee Charter. The Remuneration Committee and the Board regularly review the director remuneration system, which is primarily based on fixed compensation. Director remuneration includes monthly compensation, annual director remuneration, and meeting attendance fees, with reasonable levels determined in consideration of overall operating performance. Article 19 of the Articles of Incorporation provides that, where the Company reports a profit for the year, no more than 2% shall be allocated as director remuneration. Following review and approval by the Remuneration Committee and the Board, the allocation of director and employee remuneration for 2025 will be reported at the 2026 Annual General Meeting in accordance with applicable requirements.
Management remuneration is determined by considering the Company’s annual operating performance, financial condition, overall business results, and individual performance. When the Company is profitable, manager bonuses are primarily based on results under the Performance Management Regulations, strengthening performance-oriented management and linking management remuneration to corporate results, individual contribution, and long-term development objectives. The remuneration system is reviewed and supervised by the Remuneration Committee and submitted to the Board for resolution. Avalue has not engaged external consultants to participate in remuneration review.
Avalue’s senior management remuneration system is performance-oriented and incorporates corporate sustainability objectives, demonstrating the Company’s emphasis on ESG strategy. Compensation includes recurring remuneration and non-recurring awards based on overall organizational and individual performance. Performance objectives also cover ESG indicators related to environmental management, social responsibility, and corporate governance. These arrangements are reviewed by the Remuneration Committee and implemented after Board approval. This mechanism strengthens senior management’s commitment to and execution of sustainability strategies, embeds sustainability objectives into operations and decision-making, and responds to stakeholder expectations regarding long-term corporate value and responsible governance.
Employee compensation is based on operating results, industry pay levels, job responsibilities, professional competence, work performance, and internal equity. Avalue maintains a competitive and reasonable remuneration system to attract, retain, and motivate talent. Employee compensation includes fixed salaries, allowances, bonuses, and related benefits, and may be adjusted based on Company performance and individual results. Through the performance management system, individual and departmental objectives are linked to the Company’s overall operational direction and serve as important references for salary adjustment, bonus distribution, promotion, career development, and talent cultivation, encouraging employees to continuously improve their professional capabilities and performance.
To enable employees to share in the Company’s operating results, Article 19 of the Articles of Incorporation provides that, where the Company reports a profit for the year, between 1% and 20% shall be allocated as employee remuneration and distributed in accordance with applicable laws and internal rules. Allocation takes into account overall profitability, employee responsibilities, performance, and contribution in order to balance incentive effectiveness and fairness. Through stable compensation, performance-based rewards, and employee remuneration, Avalue seeks to establish a compensation mechanism linked to corporate growth, strengthen employee engagement and commitment, and support long-term, stable, and sustainable operations.