The performance appraisal result of the board of directors for 2018

FFHC’s "Performance Measurement & Appraisal Rule of the Board of Directors" was deliberated and reviewed at the 15th meeting of the 5th Board of Directors on August 26, 2016. Based on that rule, board shall conduct the 5-way performance appraisal of the Board of Directors annually upon every fiscal year, including the board’s engagement and understanding with FFHC’s business operation, the quality of the decision-making of the board of directors, the composition structure and diversity of the board, the election and training of the directors, as well as internal control. The final assessment result will be scored into 3 levels: “Beyond the Standard”, “Compliance with the Standard” and “Still can be Strengthened.” The scored level should be reported to the Board within three months after the end of each year.

In order to better implement corporate governance and enhance the performance evaluation result of the Board of Directors, starting from 2018, FFHC also supplemented the “Board Performance Evaluation Questionnaire” with the “Corporate Governance Evaluation Indicators” and the "Corporate Governance Best Practice Principles for Financial Holding Companies”, instead of a yes/no question, the metrics are adjusted and a phased option was adopted to improve the effectiveness of the assessment.

After FFHC conducted the new performance evaluation methodology for 2018’s board of Directors and an internal self-evaluation of the members by board, the achievement percentile in five major indicators was 94%. Thus, the appraisal result of “Beyond the standard” was submitted to the 9th meeting of the 6th Board of Directors on February 21, 2019.

The performance appraisal result of the board of directors for 2017

FFHC’s "Performance Measurement & Appraisal Rule of the Board of Directors" was deliberated and reviewed at the 15th meeting of the 5th Board of Directors on August 26, 2016. Based on that rule, the performance appraisal of the Board of Directors for 2016 was conducted and disclosed accordingly. Additionally, the rule also requires that evaluation must be conducted via an external professional institution/expert at least every three years. In order to make it more objective, FFHC decided to initiate this external appraisal project in the year of 2017 through external professional agency. As a result, the external appraisal report indicates that FFHC’s Corporate Governance not only has reached the highest level of top-5% among domestic corporates, but also the board of directors has exceeded the standard benchmark. Furthermore, all directors’ self-assessment questionnaire surveys, interviews and eight-way comprehensive assessments, delivered that FFHC board members have fulfilled legal compliance required by authority and regulators, and established effective or proactive practices towards their meeting operations. In addition, external professional agency concluded a number of proposals for ongoing improvements for the board of directors of FFHC. The external performance appraisal result of the board of directors have been submitted to the 33rd meeting of the 5th board of directors on February 23, 2018.

The performance appraisal result of the board of directors for 2016

FFHC’s "Performance Measurement & Appraisal Rule of the Board of Directors" was deliberated and reviewed at the 15th meeting of the 5th Board of Directors on August 26, 2016. Based on that rule, board shall conduct the 5-way performance appraisal of the Board of Directors annually upon every fiscal year ended, including the board’s engagement and understanding with FFHC’s business operation, the quality of the decision-making of the board of directors, the composition structure and diverse of the board, the selection and education of the directors, and internal control). The final assessment results will be categorized into “Beyond the Standard”, “Compliance with the Standard” and “It can still be strengthened.” This result should be reported to the Board within three months after the end of each year.

The 2016 appraisal result of “Beyond the standard” was submitted to the 20th meeting of the 5th Board of Directors on January 19, 2017.