The Taiwanese semiconductor company, MediaTek, has announced the distribution of employee dividends for the second half of 2020. However, due to the impact of the performance recession, the total dividend amount is expected to be around 70% of the first half of last year. As a result, employees have experienced a 30% reduction in their dividends.
Differences in Dividend Amounts and Salary Increases
Netizen revelations have revealed that MediaTek’s E7 and E8 grassroots employees received different dividends depending on their performance. The dividend amounts ranged from over NT$100,000 to more than NT$900,000. Salary increases were also distributed based on employee performance, with the majority ranging from 1% to 7.5%.
Potential Decrease in Average Dividend Amount
Taiwan media has estimated that the average dividend amount per employee can fall below one million NT dollars to 809,000 NT dollars, approximately 183,000 yuan. It is estimated that around 14,000 employees are eligible to participate in dividends.
Distribution of Dividends and Salary Increases
MediaTek distributes employee dividends based on a certain percentage of pre-tax earnings, which is approximately 20%. Dividends are distributed twice a year, with the first half distributed in August and the second half distributed in February of the following year. The company has also begun to raise salaries from February.
MediaTek’s Response to Employee Dividends
In response to inquiries about the reduction in employee dividends, MediaTek has emphasized that employee bonuses are confidential and it is inconvenient to comment. The company also stressed that they provide competitive annual overall remuneration and global development job opportunities to attract and retain talent.
Impacts of Performance Recession on MediaTek
MediaTek’s performance recession is not an isolated event. Other semiconductor companies, such as TSMC, have also reported lower than expected earnings due to global market fluctuations. The impact of the performance recession on MediaTek’s employee dividends underscores the need for companies to remain competitive in a rapidly changing market.
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