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Compensation Management System for Directors and Senior Management

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This document outlines the compensation management system for directors and senior management of Huizhou Babao Decoration New Materials Co., Ltd. It details the principles, structure, and management of their remuneration, aiming to align compensation with company performance, individual responsibilities, and market standards. The system emphasizes fairness, accountability, and long-term development, with provisions for adjustments based on economic conditions and company performance.

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Huizhou Babao Decoration New Materials Co., Ltd. Compensation Management System for Directors and Senior Management (Revised Draft)

Chapter 1 General Provisions

Article 1 Huizhou Babao Decoration New Materials Co., Ltd. (hereinafter referred to as the "Company") has formulated this system to establish a incentive and restraint mechanism adapted to the modern enterprise system, effectively motivate the enthusiasm and creativity of directors and senior management, improve the company's operational management level, further enhance the company's efficiency, promote the company's growth, strengthening, and excellence, and ensure the realization of the company's development strategic goals, in accordance with the "Company Law of the People's Republic of China," the "Code of Corporate Governance for Listed Companies," and other relevant laws and regulations, as well as the "Articles of Association" and the company's actual situation.

Article 2 This system applies to the following personnel: (1) All directors of the company: including non-independent directors (including employee representative directors, hereinafter referred to as the same), and independent directors; (2) Senior management personnel: the general manager, deputy general managers, financial controller, board secretary, and other personnel stipulated in the "Articles of Association."

Article 3 The compensation of the company's directors and senior management personnel shall be determined based on a comprehensive assessment of external compensation survey levels, the company's operating scale, and the company's operating performance, combined with the company's operating plan, the responsibilities of the positions, the value of the positions, and the abilities of the personnel. Compensation shall be matched with company performance and individual performance.

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