Chapter 1 General Principles
Article 1
To standardize the compensation management of directors and senior management of Yantai Changyu Pioneer Wine Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, and improve the Company's compensation management system, this system is formulated in accordance with the relevant provisions of the Company Law of the People's Republic of China, the Guidelines for the Governance of Listed Companies, the Self-Regulatory Guidelines for Listed Companies on the Shenzhen Stock Exchange No. 1 - Standard Operations for Main Board Listed Companies, and the Articles of Association of Yantai Changyu Pioneer Wine Co., Ltd. (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
This system applies to the directors and senior management as stipulated in the Articles of Association.
Article 3
The compensation for the Company's directors and senior management is determined based on the Company's operational and comprehensive management situation, combined with the completion of annual operational plans, responsibilities, work objectives, and individual performance and development.
Article 4
The compensation management system for the Company's directors and senior management follows these principles:
- The principle of aligning compensation with the Company's long-term interests;
- The principle of matching compensation levels with job value, responsibilities, and obligations;
- The principle of combining short-term compensation with long-term incentives;
- The principle of balancing incentives and constraints, with equal emphasis on rewards and penalties.