Guoguang Electric Power Co., Ltd.
System for the Assessment of Remuneration for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To ensure that the company's directors and senior management perform their duties in accordance with the law, establish a scientific and effective incentive and restraint mechanism, and improve the company's remuneration and assessment management system, further clarify matters related to the remuneration and assessment of directors and senior management, and promote the healthy, sustainable, and stable development of the company, the Board of Directors hereby formulates this system.
Article 2 The scope of application of this system:
(1) Persons serving as directors of the company;
(2) Senior management personnel of the company, including the President, Vice Presidents, Secretary of the Board of Directors, and Chief Financial Officer, etc.
Article 3 Principles for the remuneration and performance assessment of the company's directors and senior management:
(1) The principle of open, fair, and transparent remuneration standards;
(2) The principle of matching remuneration with the annual performance assessment;
(3) The principle of combining remuneration with the company's actual operating conditions;
(4) The principle of combining remuneration with power, responsibility, and benefits;
(5) The principle of balancing incentives and constraints.
Article 4 The relevant remuneration assessment body of the company may adjust the remuneration of directors and senior management according to the following circumstances, with the basis for adjustment including:
(1) Remuneration levels in the same industry;
(2) Remuneration levels in the region;
(3) Inflation levels;
(4) The company's actual operating conditions;
(5) Adjustment of organizational structure, changes in position, and responsibilities.
Article 5 The annual remuneration referred to in this system refers to the income obtained by the company's directors and senior management before paying individual income tax.
Chapter 2 Authority for Determining Remuneration and Assessment
Article 6 The remuneration plan for directors shall be proposed by the Remuneration and Assessment Committee of the Board of Directors and determined by the Shareholders' Meeting; the remuneration plan for senior management shall be proposed by the Remuneration and Assessment Committee of the Board of Directors and determined by the Board of Directors.
Article 7 The company's Human Resources Department shall serve as the daily operational body of the Remuneration and Assessment Committee of the Board of Directors, responsible for daily liaison and meeting organization.
Chapter 3 Remuneration Structure and Payment Methods for Directors and Senior Management
Article 8 The remuneration of directors and senior management shall consist of a basic annual salary or allowance and a performance-based annual salary, determined based on the company's actual situation and market salary levels.
Article 9 Principles and Payment of Remuneration Assessment