Chapter 1 General Principles
Article 1
To further improve the compensation management of directors and senior management at Shengxin Lithium Energy Group Co., Ltd. (hereinafter referred to as "the Company"), establish effective incentive and constraint mechanisms, motivate the work enthusiasm of directors and senior management, enhance the level of corporate management, and promote the growth of corporate benefits, this system is formulated 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, regulations, normative documents, and the Articles of Association, combined with the actual situation of the Company.
Article 2
This system applies to directors and senior management as stipulated in the Articles of Association.
Article 3
The compensation management for the Company's directors and senior management follows these principles:
- Fairness Principle: Reflects that income levels are commensurate with the Company's scale and performance while considering market compensation levels;
- Unity of Responsibility, Authority, and Interests Principle: Reflects that compensation corresponds to the value of the position and the extent of responsibilities;
- Long-term Development Principle: Reflects that compensation aligns with the goals of the Company's sustainable and healthy development;
- Balance of Incentives and Constraints Principle: Reflects that compensation distribution is linked to assessments, rewards, and penalties, and is connected to the Company's incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The Board of Directors' Compensation and Assessment Committee is responsible for formulating the compensation management system for the Company's directors and senior management, which must be approved by the Board of Directors and the shareholders' meeting. The compensation plan for directors is determined by the shareholders' meeting and disclosed. The compensation plan for senior management is approved by the Board of Directors, explained to the shareholders' meeting, and fully disclosed.
Article 5
The Compensation and Assessment Committee, authorized by the Board of Directors, is responsible for establishing assessment standards for directors and senior management and conducting assessments, as well as formulating and reviewing the compensation decision-making mechanisms, decision-making processes, payment and recovery arrangements, and other compensation policies and plans.