Report highlights ‘fat cat’ culture of PLC’s in 2010

The China Post news staff

The China Post news staff–Publicly traded companies, even money-losing ones, paid their board directors and supervisors extravagantly in 2010, statistics released by the Taiwan Stock Exchange Corporation (TWSE) show. A total 41 of them, including some fairly well known ones, even gave their board directors and supervisors fattened compensation packages although they were in the red after tax.

These 41 companies are now a focus of public attention after the passage in November of 2010 an amendment to Article 14 of the Securities Exchange Act, which requires publicly traded companies each with a paid-in capital of less than NT$10 billion to set up remuneration and compensation committees by the end of 2011. Comosbank (萬泰銀行), for example, after registering an after-tax net loss of NT$34 billion in 2010, offered its directors and supervisors a NT$51.81 million increase in compensation packages and part-time pay over the previous year, which translated into a more than NT$1.5 million pay increase apiece. Tecom Co. Ltd., (東訊股份有限公司), which reported an after-tax loss of NT$548 million in 2010, gave its directors and supervisors a more than NT$10 million increase in their part-time pay while keeping their regular compensation packages untouched. As a result, a board director, or a supervisor, received an additional NT$1.023 million on average. The 41 money-losing enterprises that gave their director and supervisory an increase in both compensation packages and part-time salary in 2010 included, in order of generosity, Cosmosbank (萬泰銀行), Teapo Electronic Corporation (智寶電子), Compeq Manufacturing Co. Ltd. (華通電腦股份有限公司) Twinhead International Corp. (倫飛電腦實業股份有限), Tecom Co. Ltd., (東訊股份有限公司), Ritek (錸德科技), and RITdisplay Corporation (錸寶科技).