PART I In November 2003, the Securities and Exchange Commission approved changes to the New York Stock  Exchange’s listing standards related to the corporate governance practices of listed companies. Under these rules,  listed foreign private issuers, like us, must disclose any significant ways in which their corporate governance  practices differ from those followed by New York Stock Exchange-listed U.S. companies under the New York  Stock Exchange’s listing standards. See “Item 16G. Corporate Governance”. A copy of the significant differences  between our corporate governance practices and New York Stock Exchange corporate governance rules  applicable to U.S. companies is available on our website  http://www.cht.com.tw . The information contained on  our website is not a part of this annual report.  The following section sets forth information regarding the employees. As of December 31, 2010, we had approximately 28,134 employees on a consolidated basis. The following  table is a breakdown of our employees from 2008 to 2010 on a consolidated basis.  The following table is a breakdown of our employees from 2008 to 2010 on a non-consolidated basis.  As of December 31, 2010, approximately 73% of our employees had university, graduate or post-graduate  degrees. To improve our operational efficiency by reducing personnel costs, we offered a number of voluntary  retirement programs between June 1, 2000 and December 31, 2010, which resulted in a reduction in our  workforce of approximately 11,712 employees.  As of December 31, 2010, approximately 99% of our employees on a non-consolidated basis were members  of our principal labor union. Our collective agreement sets forth work rules, grievance procedures and provides  for union participation in performance evaluations and promotion decisions. Our union members also occupy  a majority of the seats on our employee welfare and pension fund committees. In addition, we will continue to  maintain a good relationship with our labor union. We strive to have good communication with our employees  and the labor union by inviting representatives of our labor union to attend various meetings related to the  performance of our employees.  Pursuant to our articles of incorporation, our employees are entitled to 2% to 5% of the distributable  earnings as employee bonuses. Our practice in the past to determine the amount of the bonus has been based  on the operating results. In the fourth quarter of 2010, we distributed an aggregate bonus to our employees of  NT$1.8 billion, or 4.37% of our 2009 distributable earnings. Since the change in accounting regulations requiring  bonuses in the form of stocks be recorded as an expense at their market value instead of their par value, we  instead decided to distribute cash bonuses.   2008  2009  2010 Employees Technical 14,459  14,490  14,522  Operations 10,589  11,643  11,785  Administrative 2,117  1,782  1,827  Total 27,165  27,915  28,134  2008 2009 2010 Employees Technical 14,079  14,061  13,879  Operations 8,990  9,133  9,189  Administrative 1,482  1,474  1,406  Total 24,551  24,668  24,474  D. Employees  97