Chapter 1 General Principles
Article 1
To further improve the management level of Li Er Chemical Co., Ltd. (hereinafter referred to as "the Company"), establish and enhance the incentive and constraint mechanism for operators, effectively motivate the enthusiasm and creativity of the Company's directors and senior management, and promote the long-term development of the Company, this system is formulated in accordance with the "Company Law of the People's Republic of China," "Guidelines for the Governance of Listed Companies," and other relevant laws and regulations, as well as the provisions of the Company's Articles of Association, combined with the actual situation of the Company.
Article 2
This system applies to the Company's directors and senior management. Senior management includes the general manager, deputy general managers, financial director, board secretary, and other senior management identified in the Articles of Association.
Article 3
The determination of annual compensation for the Company's directors and senior management shall follow the principles below:
- Adhere to high-quality development.
- Maintain a market-oriented direction.
- Combine classified assessments with benchmark assessments.
- Closely integrate performance assessments with incentive constraints.
Chapter 2 Management Institutions and Responsibilities
Article 4
The compensation plan for the Company's directors and senior management shall be formulated by the Board of Directors' Compensation and Assessment Committee, which shall clarify the basis for determining compensation and its specific components. The compensation/allowance plan for directors shall be decided by the shareholders' meeting and disclosed. When the Board of Directors or the Compensation and Assessment Committee evaluates or discusses the compensation of an individual director, that director shall abstain from the discussion.
Article 5
The Company's Board of Directors Office shall organize relevant departments to cooperate with the Compensation and Assessment Committee of the Board of Directors to implement the performance assessment of the Company's directors and senior management.