Taishin FHC Corporate Social Responsibility Report 2019

25 Sustainable Governance Membership in Associations Ethical Corporate Management Best Practice Principles Employee Code of Conduct Executive members’shareholding position and compensation percentage Note 1. By the definition of executive member refers to "Regulations Governing the Preparation of Financial Reports by Financial Holding Companies," there were 12 executive members. The compensation listed above is mainly based on the receiving amount during their period of service in 2019. Note 2: The stock market value is calculated based on the average stock market value of the 30 business days before the end of 2019; the market value of common shares is calculated at TWD 14.42, and the market value of preferred shares is calculated at TWD 55.79. Unit: TWD thousand Position Name Shareholding (1,000 shares) Common shares Preferred shares Base salary Average compensation (numberof executivemembers) Market value of shares / Average salary of managers 4,116 - 58,020 4,463 13.30 5,149 329 1.73 President Other executive members (Note 1) Welch Lin 1-2 Business Integrity Business Integrity Policy • Employment ethics • Employee relationship management • Prohibition of concurrent employment and avoidance of conflicting interests • Gifts and entertainment policy • Protection of client privacy • Assurance of complete and accurate information • Protection of intellectual property rights • Fair trading principles • Anti-money Laundering • Duty to report misconduct Employee Code of Conduct Taishin Financial Holdings and its subsidiaries participated in about 30 public associations at home and abroad in 2019 to promote the stable development of financial business through exchange and cooperation with peer companies, especially through the promotion of financial cooperation and development, international and regional exchanges, and sustainable operations as ways to participate in and fulfill a role in driving our core business. In terms of contributions to financial cooperation and development, Taishin participates in Bankers Association of the Republic of China, Chinese National Association of Industry and Commerce, and Taiwan Academy of Banking and Finance. In terms of international and regional exchanges, Taishin participates in Asian Financial Cooperation Association (AFCA) , Asian Bankers Association and Cross-Strait CEO Summit. With respect to corporate sustainability, Taishin actively contributes its efforts as a member of Center for Corporate Sustainability. Other subsidiaries including Taishin Securities, Taishin Venture Capital, Taishin Securities Investment Trust and Taishin Securities Investment Advisory have also undertaken directorship or membership in their respective business associations. Member - ship fees and donations paid by Taishin Group in 2019 amounted to a total of TWD 9,300,250, including the highest amount of TWD 2,679,950 to The Bankers Association of The Republic of China and the second highest amount of TWD 2,267,300 to AFCA, and the third highest amount of TWD 650,000 to Chinese National Association of Industry and Commerce . To establish a strong corporate governance and risk management system that guides employees' behaviors and decision process. Taishin performs business activities in accordance with competition laws, and has integrity and governance rules in place to support integrity and culture of the organization.