New survey reveals greatest concerns among independent directors in Taiwan

最新調查顯示台灣獨立董事最擔心的問題

Survey finds that 60% of independent directors for Taiwanese companies were paid less than NT$1 million per year


TAIPEI (Taiwan News) — The Independent Director Association Taiwan (TIDA) released survey results on Wednesday (Aug. 2) disclosing the average compensation of independent directors and their top five greatest concerns when exercising their duties.

The survey revealed that 60% of independent directors in Taiwanese companies were paid less than NT$1 million (US$31,500) a year, of which nearly half received a meager NT$0.5 million in their annual cash compensation. Meanwhile, 6.82% earned over NT$10 million.

In Taiwan, each listed firm is required to hire at least two independent directors, and they should comprise no less than one-fifth of the board, with a new term limit of nine years. A total of 6,518 independent directors have been hired by Taiwanese listed firms, TIDA's data shows.

When asked about their greatest concerns in their roles, the top five issues were named by independent directors: accuracy of earnings reports; risk management solutions; sustainability practices; internal auditing; acquisition and disposal of assets; and the company's transactions with stakeholders.

On the other hand, the changes they are most looking forward to were the increase in female board members; investigation rights; and integrating sustainability into business road maps.

Liu Yung-sheng (劉容生), a professor at National Tsing Hua University, told Business Today that companies should not only aim to meet ESG standards but think strategically about how to integrate ESG into businesses to stay competitive in the future.

Chung Hui-ming (鍾惠民), dean of the Department of Information and Finance Management at National Yang Ming Chiao Tung University, said independent directors should ask themselves what impact the AI revolution will have on their businesses, and what advice they can offer in pushing for a human-centered digital transformation without compromising stakeholders' rights.