Guidelines for Performance Assessment and Incentives for Senior Management Tenure
To standardize and improve the performance assessment and incentive constraints for senior management at Guangdong Guangzhou Daily Media Co., Ltd., these guidelines are formulated based on the "Management Measures for Performance Assessment and Compensation of Senior Management" and refer to the "Performance Assessment Plan for Heads of State-owned Cultural Enterprises in Guangzhou" (Sui Wen Zi Tong [2020] No. 2) and "Implementation Rules for Performance Assessment of Heads of State-owned Cultural Enterprises" (Sui Wen Zi Tong [2020] No. 3), combined with the actual situation of the company.
I. Performance Assessment for Tenure
(1) Assessment Period
The performance assessment period for senior management is three years (calendar years), starting from January 1 of the first year of the assessment period to December 31 of the third year.
(2) Assessment Indicators and Weights
The performance assessment indicators include operational indicators and tenure evaluation.
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Operational Indicators: These include the state-owned capital preservation rate, average revenue growth rate, and total profit during the tenure.
- State-owned Capital Preservation Rate: This refers to the ratio of the state-owned capital at the end of the period, after deducting objective factors, to the state-owned capital at the beginning of the same period. Calculation method: The product of the state-owned capital preservation rates for each year during the tenure. The rates are confirmed based on the "Interim Measures for Confirming the Results of State-owned Capital Preservation" (Order No. 9 of the State-owned Assets Supervision and Administration Commission), with objective factors determined by the company's board of directors.
- Average Revenue Growth Rate: This indicates the average growth of the company's revenue over the three years of the tenure, including main business income and other business income. Calculation method: The product of the revenue growth rates over the three years, followed by taking the cube root (if negative, appropriate arithmetic treatment is applied). The annual revenue growth rates are confirmed based on the company's audit reports.
- Total Profit During Tenure: This refers to the sum of the company's total profit over the three years of the tenure. Calculation method: The sum of total profits over the three years, confirmed based on the company's audit reports.
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Tenure Evaluation: This is conducted by the company's Compensation and Assessment Committee based on the performance reports of senior management, considering the industry and characteristics of the company, to comprehensively assess the actual development status and the performance of senior management during the tenure. Evaluation content mainly includes: party building and integrity, completion of strategic planning goals, reform and innovation, business development performance during the assessment period, safety production and stability maintenance, fulfillment of social responsibilities, and performance of senior management.
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Indicator Weights: The weight of operational indicators is 70% (of which: state-owned capital preservation rate 30%, average revenue growth rate 10%, total profit during tenure 30%), and the weight of tenure evaluation is 30%.
(3) Scoring Method
- Comprehensive Score: The comprehensive score for the performance assessment is calculated as follows:
- Comprehensive score = Operational indicators score + Tenure evaluation score
- Operational indicators score = State-owned capital preservation rate score + Average revenue growth rate score + Total profit score