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The Taiwan Semiconductor Manufacturing Company (TSMC) has released statistics for the average compensation for its graduate and direct laborers in its sustainability report released last week. The details outline the difference in average compensation between a TSMC employee and its chief executive officer (CEO) Dr. C.C. Wei, with the ratio sitting at hundreds of points which is typically the case at any large company. The firm also shared that most of its employees also participate in share purchase programs through which TSMC shares are sold at a 15% discount to allow employees to accumulate ownership of the company.

TSMC's Average Employee Compensation Stood at NT$3.1 Million In 2022 - More Than 4x Taiwan's Average Annual Wage

The sustainability report focuses on several aspects of TSMC's operations, including profit sharing schemes for its fabrication plants, compensation for new employees, compensation for new hires, bonuses and the ratio of average compensation to that received by Dr. Wei. According to the firm, the average compensation for a new hire with a master's degree was higher than NT$ 2 million and the average compensation for a laborer was NT$1 million.

Compared to the average annual wage in Taiwan of NT$677,000 as of November 2022, the wages for graduate employees are more than four times what an average worker earns in Taiwan. Semiconductor companies rank at the top of the wage food chain, with an average wage sitting at NT$969,000.

Coming to the minimum wage, Taiwan's minimum wage sits at NT$316,800 - making the stated labor wages nearly three times higher than the minimum wage. However, according to TSMC, the labor wage is more than four times the minimum wage in Taiwan. The firm added that 70% of its employees take part in share purchase programs, through which it offers a 15% subsidy on share purchases to incentivize employee ownership.

Image: TSMC 2022 Sustainability Report

Moving towards the juicy bits of the compensation figures, TSMC shares that the median total compensation for its global employee base was NT$2.33 million. This figure excludes benefits and the firm shares that its CEO earns approximately 276 times this amount. Overall, TSMC's average compensation stood at NT$3.1 million in 2022, marking a 30.5% annual growth. During the same time, Taiwan's average wages grew by 3.1% and TSMC's revenue grew from NT$1.5 trillion to NT$2.3 trillion to mark a 43% growth. Between 2021 and 2022, the Taiwanese chip maker's profits also jumped by a remarkable 73%.

TSMC also explained that the cash bonuses and profit sharing schemes for employees are different in Taiwan and in other regions. For Taiwanese employees, cash bonuses are paid quarterly and profits are shared annually to incentivize long term commitment. Those outside Taiwan see models adapted to local cultures, with cash bonuses typically paid annually or through schemes ranging from one to three years. The firm added that its CEO's compensation grew by 3.4x compared to the annual growth rate of overall average compensation. For its Taiwanese fabs, TSMC shared NT$121.4 billion in profits with employees.

TSMC had 73,677 global employees in 2022, out of which 73,090 were permanent and 587 were temporary employees. 73,310 employees worked on a full time basis, with 367 working part time.