Performance Management System

 

 

Pulmuone operates an objective and fair talent management system centered on jobs and performance with the goal of realizing sustainable values. When recruiting new employees, we practice open recruitment that comprehensively and in-depth evaluates the applicant's job capabilities and competencies based on sound personality rather than a resume listing items.

 

1. Communication for Success, CfS 

 

Pulmuone’s performance management system is named "Communication for Success (CfS)", as setting clear goals and creating practical results through active communication is the main purpose and characteristic of our performance evaluation. Currently, this system is being applied and fully functioning in all Pulmuone business divisions.

 

CfS is continuously managed through the process of 1) setting goals, 2) checking progress, and 3) evaluating results. Every year, when establishing an annual business plan, each business units (BUs), headquarters and departements establish their own goals contributory to the companies' overall goals. Such goals are then allocated to each teams and employees. By linking individual performance evaluation with team-level performance evaluation, we ensure that the company's overall goals are better aligned with employees' goals. 

The progress of individual and team-level goals is monitored through intermediate evaluations and frequent feedback. For managers (executives, team leaders), 360-degree feedback from superiors, colleagues, and subordinates is provided and used as reference material during the evaluation process for promotion. This is for the increased objectivity in performance and capability evaluation. Based on the feedback received from superiors, colleagues, and subordinates during mid-term evaluations and regular feedback, all employees can quickly review and revise their individual strategies to achieve goals, which in turn affects the upper-level managers' performance and ultimately the performance of the teams they are in. During this process, the Communication Leader (CL) actively supports employees to systematically manage goals/performance and improve their strengths.

 

2. Performance Management System  

 

Our performance management system involves a series of active management practices aimed at maximizing the performance of employees as an individual as well as a group. Therefore, rather than simply calculating results, we thoroughly manage "performance" through clear milestones and goals.

 

In managing performance, we not only take into account financial factors such as sales, profits, and costs related to the business, but also sustainability factors such as reduction of greenhouse gas emissions, reduction of plastic use, safety and health activities, customer satisfaction, and conversion to animal welfare approved raw materials. 

 

[Pulmuone's Performance Managing Hierarchy (Categories)]

 

3. Compensation System 

 

Pulmuone has a function-based compensation system. Based on solid talent management strategy, we determine each employees' compensation, consisted of basic pay and performance bonuses, in consideration of their job value and performance. We maximize employees' motivation by presenting clear principles and standards at the same time strengthening compensation tied to performance evaluation grade. At the same time, in compliance with Article 6 of the Labor Standards Act and Article 8 of the Equal Employment Opportunity Act, we pay the same compensation (wage) for work of equal value within the same business, regardless of differences in gender, nationality, or other social status.
 

[Living Wage Gap between Gender]

 

We set a compensation policy based on market analysis results and differentiate basic pay based on the value of the job, not the length of service. This translates into higher basic pay raises along with higher responsibilities when promoted to a higher level. Performance bonuses are provided based on the achievement rate for each performance management categories. For the sharing of mid- to long-term value created and the promotion of reponsible management, different cacluation criteria is applied for management and non-management positions. 

 

[Pulmuone's Ranking System]

 

In general, performance bonuses for executives and employees are paid annually in cash in the following year based on the performance evaluation. However, for the high level personnels such as officers in charge of subsidiaries, officers in charge of corporate business innovation, and business/functional executives, we operate the Phantom LTI system, a long-term incentive system based on the increase in shareholder value, to encourage the achievement of mid- to long-term goals and sharing of value created.

 

4. Phantom LTI (Long Term Incentive) 

 

The Phantom LTI system is a system that grants virtual stocks based on performance evaluation and pays the amount calculated in cash by multiplying the number of stocks granted by the increase in stock price according to the degree of goal achievement during the relevant period. The criteria we use for determining the number of shares paid are financial values ​​such as EBITDA and Net Debt, as well as sustainability indicators according to the business characteristics of the department each high level personnels' are in charge. The hypothetical shares paid in this way are evaluated and paid out over an average of three years. According to the evaluation results in 2023, the Phantom LTI system was applied to 20 high level personeels.