Mega bonuses of 50 months salary paid by Taiwan firm

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TAIPEI: Taiwan’s Evergreen Marine Corp is celebrating a standout year by awarding stellar bonuses to some of its staff. The Taipei-based shipping company is handing out year-end bonuses equal to 50 months’ salary, or more than four years’ pay, on average, according to a person familiar with the matter.

The size of the windfall varies depending on an employee’s job grade and function, and the outsized bonuses are only applicable for staff with Taiwan-based contracts, the person said, asking not to be identified because the details are private.

Year-end bonuses have always been based on the company’s performance for the year and the individual performance of employees, Evergreen Marine said in a statement last Friday, declining to elaborate.

Evergreen Marine’s largesse is the result of an unprecedented industry-wide shipping boom over the past two years, driven by a pandemic-fuelled surge in demand for consumer goods and freight rates.

The company’s 2022 revenue is expected to soar to a record 634.6 billion Taiwanese dollars (US$20.7bil or RM90.5bil), more than tripling 2020 sales.

Evergreen Marine, which attracted headlines for all the wrong reasons in early 2021 when a ship it operated got stuck in the Suez Canal, roiling supply chains, doled out bonuses up to 52 months salary, Taipei’s Economic Daily News reported last week.

Some employees received payments of more than US$65,000 (RM284,000) on Dec 30, the news outlet said, without disclosing where it got the information.

Not all of Evergreen Marine’s staff have been so lucky, though. Its Shanghai-based employees have complained of unfair treatment after they only got bonuses of five to eight times their monthly salaries, Caixin reported, citing local workers.

The recent pay day may be as good as it gets for the foreseeable future, however. Shipping companies have warned that rapidly weakening global growth combined with falling freight rates is likely to hurt profitability this year.

Evergreen Marine’s stock tumbled 54% last year after a stunning 250% gain in 2021. — Bloomberg

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