Chapter 1 General Principles
Article 1
To further improve the compensation management system of Kairuide Holdings Co., Ltd. (hereinafter referred to as "the Company"), and to fully motivate the enthusiasm, initiative, and creativity of the Company's directors and senior management, enhance management levels, and promote the healthy, stable, and sustainable development of the Company, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Code of Corporate Governance for Listed Companies," and "Articles of Association," among other relevant regulations, combined with the actual situation of the Company.
Article 2
The directors and senior management applicable to this system include: the Company's directors, general manager, deputy general managers, board secretary, financial director, and heads of core departments and core subsidiary directors and executives determined by the Company's remuneration and assessment committee.
Article 3
The basic principles of the Company's director and senior management compensation system are:
- Reflecting income levels that correspond to the Company's scale and performance, while aligning with external compensation levels;
- Reflecting the principle of equivalence of rights, responsibilities, and benefits, where compensation corresponds to the value of the position and the size of responsibilities, thereby exerting the incentive and constraint functions of compensation;
- Reflecting the principle of long-term interests of the Company, aligning with the goals of sustainable and healthy development;
- Reflecting the principle of balancing incentives and constraints, where compensation distribution is linked to assessments and rewards and punishments, and is connected to the Company's incentive mechanism.
Chapter 2 Compensation Management Organization
Article 4
The Company's board of directors' remuneration and assessment committee is responsible for formulating assessment standards for directors and senior management and conducting assessments, as well as formulating and reviewing the compensation policies and plans for directors and senior management. The director compensation plan must be approved by the board of directors and submitted to the shareholders' meeting for deliberation. The senior management compensation plan must be approved by the board of directors. When evaluating individual directors or discussing their compensation in board or remuneration and assessment committee meetings, the concerned director must abstain.
Article 5
The Company's human resources and finance departments cooperate with the board of directors' remuneration and assessment committee to implement the specific plans for the compensation and assessment of directors and senior management.