Chapter 1 General Principles
Article 1
To improve the compensation management system for directors and senior management of Chengdu High-tech Development Co., Ltd. (hereinafter referred to as "High-tech Development" or "the Company"), establish effective incentive and restraint mechanisms, enhance the work enthusiasm of directors and senior management, improve the operational management efficiency of the Company, and ensure the healthy, sustainable, and steady development of the Company, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Guidelines for the Governance of Listed Companies," and other relevant laws, regulations, normative documents, and the Company's Articles of Association, combined with the actual situation of the Company.
Article 2
This system applies to the Company's directors (including independent directors and non-independent directors) and senior management appointed by the board of directors.
Article 3
The term "compensation management" in this system refers to the standardized management of the compensation and benefits of directors and senior management, including the composition of compensation and compensation management.
Article 4
The management of compensation for directors and senior management follows these principles:
- Adhere to a market-oriented approach. Govern corporate governance according to modern enterprise management systems, promote the alignment of director and senior management compensation with market standards, facilitate corporate reform and development, and enhance corporate vitality.
- Balance incentives and constraints. Compensation for directors and senior management should match operational responsibilities and risks and be closely linked to performance assessments.
- Ensure legality and compliance. Strictly implement management requirements for the compensation and benefits of directors and senior management, improve supporting systems, and comprehensively standardize income distribution for directors and senior management.
- Combine short-term and long-term incentives, taking into account both current performance and long-term development.
Chapter 2 Compensation Management Organization
Article 5
The compensation plan for directors is determined by the shareholders' meeting and disclosed. The compensation plan for senior management is approved by the board of directors, explained to the shareholders' meeting, and disclosed.