TSMC's average dividend per person last year was 1.07 million, while MediaTek's was only 400,000

Source: Content from Economic Daily, thank you.

TSMC's board of directors decided yesterday (13th) to allocate more than NT$46 billion in last year's profits as cash bonuses and dividends for employees. Based on 43,000 employees in Taiwan, each employee can receive an average of NT$1.0706 million, setting a new record and breaking the NT$1 million mark for two consecutive years.

The relevant annual bonuses and dividends will still vary depending on the performance of individual employees, but if normal salaries are added, almost every employee of TSMC has the opportunity to become a member of the "million-dollar annual salary club."

TSMC has earned more than one share of capital every year for the past four years. Last year, its revenue and profits hit new highs, with net profit of NT$343.11 billion after tax and net profit of NT$13.23 per share. The bonuses and dividends distributed to employees totaled NT$46.03816 billion, accounting for 13.4% of last year's total profit, which means that for every NT$100 TSMC earned, it distributed NT$13.4 to its employees.

The amount of bonuses and dividends TSMC allocated to employees last year increased by about 2.7% year-on-year, reflecting that after TSMC's operations achieved great success, its employee benefits also increased simultaneously.

TSMC stated that employee dividends are only available to employees in Taiwan. As Taiwan's production capacity continues to expand and the number of employees increases, although TSMC delivered another impressive report card in terms of profits last year, each employee can receive a dividend of NT$1.0706 million due to the increase in the total number of employees, which is only about 0.3% more than last year.

TSMC said that this time it has allocated NT$23.01908 billion in cash bonuses to employees, which have been distributed after each quarter; and NT$23.01908 billion in cash dividends, which will be distributed in July this year.

In addition to fulfilling its responsibility to take care of its employees, TSMC also does not forget to engage in charity. Yesterday, the board of directors passed a resolution to donate NT$50 million to the TSMC Charity Foundation to carry out social welfare and charity work. At the same time, it also donated NT$50 million to the TSMC Cultural and Educational Foundation to promote cultural education.

MediaTek's employee dividends for last year have been credited. Although the total dividend for the entire year was collected at once this time, some employees found that it seemed to have shrunk again, to only about 70% to 80% of the previous year, with an average of about 400,000 yuan per person.

Although MediaTek's core business profit declined last year, its full-year profit stabilized due to the sale of its subsidiary Jiefa and the investment in Goodix shares. Its net profit after tax was 24.07 billion yuan, an increase of 0.2% year-on-year, and its net profit per share was 15.56 yuan.

According to MediaTek's internal regulations, 20% of the annual profit will be allocated as employee dividends, and will be distributed twice a year in February and August. Based on the company's net profit of 24.07 billion yuan after tax last year, since the profit figure has deducted 20% of the dividends, the total amount of employee dividends should be equivalent to 6 billion yuan last year.

However, MediaTek announced at the end of last year that it would change the way it distributes dividends to employees. Instead of distributing dividends in two installments in February and August of the following year, employees will receive their bonuses for January to June in August of the current year after the first half of the year's performance is signed off, and bonuses for July to December will be distributed in February of the following year.

Affected by the system change, the dividends received by MediaTek employees in February this year are equal to the total dividends that should have been paid last year, and were recently recorded in the accounts. Based on the current total number of MediaTek employees of about 15,000, each person can receive an average dividend of about 400,000 yuan.

Last year, the stock king Largan Precision had a net profit of NT$25.976 billion after tax and a net profit per share of NT$19.366 billion, both record highs. Based on the company's average model of setting aside about 20% of its profits for employee dividends in previous years and deducting related expenses, the total amount of employee dividends from its profits last year was approximately NT$5 billion, the highest in history. Based on the current number of 6,000 employees in Taiwan, each employee can receive an average of NT$830,000.

The total amount of employee dividends from Largan Precision's earnings last year increased by 22% year-on-year, but compared to the 2016 earnings, when each employee received nearly NT$900,000, Largan Precision's employee dividends last year were slightly lower. The main reason was that the number of employees in Taiwan increased from 4,500 to 6,000 within a year, resulting in a dilution in the average amount per person. However, it is still enviable for ordinary office workers, and is almost equivalent to "working for a year and earning a year." Largan Precision employee dividends are expected to be distributed in September this year.

Largan is the world leader in mobile phone lenses, winning orders from both Apple and non-Apple camps. Last year, thanks to Apple's launch of the new flagship iPhone X, Largan's profit rose to a new record. In recent years, Largan's investment focus has been on Taiwan. The new plant with an investment of more than 20 billion yuan started production last quarter. According to Largan's plan, at least 4,500 people will be added, which is equivalent to double the original Taiwan plant's manpower.

The new plant has just started production. Largan CEO Lin Enping revealed last month that they are still looking for land to prepare for future expansion. Largan is actively expanding production and is in urgent need of talent. Employee bonuses are still a powerful tool to attract talent.

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