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Boshen Co., Ltd. Directors and Senior Management Compensation Management System (May 2026)

Boshen Co., Ltd.·

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This document outlines the compensation management system for directors and senior management of Boshen Co., Ltd. It establishes principles for compensation, including compliance, performance orientation, and long-term incentives. The system details the responsibilities of the Compensation and Assessment Committee and the structure of compensation, comprising basic salary, performance-based pay, and long-term incentives. It also covers performance assessment and payment management.

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Boshen Co., Ltd. Directors and Senior Management Compensation Management System (May 2026)

Chapter 1 General Provisions

Article 1 To further improve the compensation management system for directors and senior management of Boshen Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, and fully mobilize the enthusiasm and creativity of the Company's directors and senior management, thereby enhancing the Company's operational and management efficiency, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Corporate Governance Guidelines for Listed Companies," and other laws and regulations, as well as the "Articles of Association of Boshen Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the Company's actual situation, this system is hereby formulated.

Article 2 This system applies to the Company's directors and senior management as stipulated in the "Articles of Association," excluding directors who do not receive remuneration from the Company. It mainly includes: (1) Independent directors, who are directors who do not hold any other positions in the Company besides their directorship, and who have no direct or indirect interest relationship with the Company and its major shareholders or actual controllers, or other relationships that may affect their independent and objective judgment. (2) Non-independent directors, who are directors who hold positions in the board of directors, excluding independent directors. (3) Employee directors, who are directors elected through democratic means such as the Company's employee representative assembly, who enter the Company's board of directors, and who participate in the Company's decision-making, management, and supervision on behalf of employee interests. (4) Senior management personnel, who include the Company's General Manager, Deputy General Managers, Financial Controller, and Secretary of the Board of Directors.

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