Chapter 1 General Principles
Article 1
To implement the "Implementation Opinions on Reasonably Determining and Strictly Regulating the Compensation and Business Expenses of Executives of Provincial State-owned Enterprises" (Yun Ban Fa [2015] No. 23), the "Management Measures for the Compensation and Business Expenses of Executives of Provincial State-owned Enterprises" (Yun Guo Zi Fen Pei [2016] No. 279), the "Regulations on Business Entertainment Management of Provincial State-owned Enterprises" (Yun Guo Zi Fen Pei [2020] No. 139), and the relevant requirements of the "Management System for Executive Compensation and Business Expenses of Yunnan Energy Group Co., Ltd.", this system is formulated based on the actual situation of Yunnan Energy Investment Co., Ltd. (hereinafter referred to as "the Company").
Article 2
This system applies to the Company's headquarters. The term "executive" refers to the responsible persons at the Company's headquarters (hereinafter referred to as "Company Executives"), including: the Chairman, Directors, full-time external Directors; the Party Secretary, Deputy Party Secretary, Discipline Inspection Secretary, and Union Chairman; the General Manager, Deputy General Manager, and Chief Financial Officer; and other leaders managed by the higher-level Party committee. The term "main executive" refers to the main leaders who preside over the Company's overall work, hold the highest decision-making power, and bear primary responsibility, including: the Chairman, Party Secretary, and General Manager.
Article 3
The term "executive compensation" refers to the work guarantees and conditions provided to Company Executives while performing their duties, mainly including official vehicles, office space, training, etc. Business expenses refer to the costs incurred by Company Executives in the course of production and operation activities due to the performance of their duties, mainly including business entertainment, domestic travel, temporary overseas travel for official purposes, communication, etc.
Article 4
The management of executive compensation and business expenses shall be organized and implemented by the Company under the guidance and supervision of the higher-level competent department. The main executive bears primary responsibility for the management of executive compensation and business expenses, while the responsible person in charge and the Chief Financial Officer bear shared responsibility.
Article 5
The management of executive compensation and business expenses shall adhere to the following basic principles:
- Adherence to the principle of legality and regulation. Based on national laws and regulations and relevant provisions, combined with the Company's production and operational needs, the Company shall resolutely eliminate any behavior of covering personal consumption expenses.
- Adherence to the principle of integrity and frugality. Oppose extravagance and waste, and firmly resist hedonism and luxury.
- Adherence to the principle of standardization and transparency. Continuously improve the system, strictly manage budgets, enhance supervision, and establish a strict, standardized, and transparent management system for executive compensation and business expenses.
Chapter 2 Responsibilities
Article 6
The Office is the leading department for the management of executive compensation and business expenses, responsible for revising and improving the management system for executive compensation and business expenses; managing the budget preparation and implementation for official vehicles, office space, business entertainment, and official communication for Company Executives. An annual budget plan and execution status shall be prepared and submitted to the higher-level competent department for record.
Article 7
The Human Resources Department is responsible for managing the implementation and budget preparation of education and training for Company Executives. Based on production and operational needs and the requirements for Company Executives to perform their duties, it is responsible for arranging and coordinating the scope of education and training and the content of learning.