Ling Chung-yuan Calls for Amending State-Owned Enterprise Act to Ease Employee Compensation Restrictions

(CNA, Taipei, May 20, by reporter Lu Yen-tzu) In recent years, the number of applicants for positions at the Bank of Taiwan has been declining annually, tarnishing its image as a 'golden rice bowl' and drawing public attention to the issue of employee compensation in state-owned financial institutions. Ling Chung-yuan, Chairperson of Taiwan Financial Holding, stated today that she hopes to amend the State-Owned Enterprise Management Act, citing the spirit of the Additional Articles of the Constitution to loosen restrictions on the compensation and benefits for personnel in state-owned financial enterprises. During the Bank of Taiwan's anniversary celebration today, Ling said in a speech that Taiwan Financial Holding's strong cumulative profit this year is due to the collective efforts of its employees, who achieved excellent performance. However, she noted that some executives jokingly question the point of good performance if it isn't reflected in employee salaries. She added that many legislators are also concerned about the bank's salary and benefits, and efforts must continue to make breakthroughs so that business results can be shared with employees, otherwise talent attraction and retention will be affected. As a state-owned bank, Bank of Taiwan's personnel compensation must comply not only with the State-Owned Enterprise Management Act but also with regulations such as the 'Guidelines for the Management of Personnel Expenses and Salaries of Business Institutions under the Ministry of Finance' and the 'Implementation Guidelines for Performance Bonuses of Business Institutions under the Ministry of Finance.' For example, while many public-shareholding banks enjoyed high profits last year and offered year-end bonuses of up to 8 months, Bank of Taiwan's bonus is legally capped at 4.4 months. In a media interview, Ling also mentioned that as private financial institutions advance, the gap with 100% state-owned public banks like Bank of Taiwan continues to widen, leading to a steady decrease in applicants in recent years. Therefore, she has previously proposed to the Executive Yuan and legislators to amend the State-Owned Enterprise Management Act to ease these restrictions. The current State-Owned Enterprise Management Act stipulates that state-owned enterprises must be frugal and that their personnel's compensation and benefits must adhere to standards set by the Executive Yuan, with no expenditures beyond these standards permitted. Ling suggested that the current Additional Articles of the Constitution specify that the state's management of public financial institutions should be based on business-oriented principles, allowing for special legal provisions regarding their management, personnel, budget, and auditing. She hopes to amend the State-Owned Enterprise Management Act to incorporate this constitutional spirit, allowing state-owned financial enterprises like Bank of Taiwan, Land Bank, and the Export-Import Bank to establish their own regulations for compensation and benefits. Ling also added that state-owned banks shoulder policy-related missions. For instance, Bank of Taiwan is the insurer for public-sector employee insurance and the old-system labor pension fund, and it also handles tasks for the Central Bank such as printing, managing, and recycling currency. These tasks, she noted, are not profit-driven but are part of the bank's role in stabilizing the government. (Editor: Pan Yi-ching) 1150520