Management System for Senior Management Compensation
Chapter 1 General Provisions
Article 1 To promote the establishment of an income distribution system compatible with modern enterprise systems at Shenzhen Salubris Pharmaceuticals Co., Ltd. (hereinafter referred to as "the Company"), further establish and improve the incentive and restraint mechanism for operators, maintain the stability of the core management team, attract outstanding management talent, effectively mobilize the enthusiasm and creativity of senior management personnel (hereinafter referred to as "senior management personnel"), improve the level of enterprise operation and management, and combine the interests of operators with the long-term interests of the enterprise to promote the healthy, stable, and sustainable development of the enterprise, this system is formulated in accordance with the "Company Law of the People's Republic of China" and other relevant laws, regulations, normative documents, and the "Articles of Association" of the Company.
Article 2 Senior management personnel referred to in this system include the following personnel: (1) General Manager of the Company; (2) Deputy General Manager of the Company; (3) Financial Controller of the Company; (4) Secretary of the Board of Directors; (5) Other senior management personnel nominated by the General Manager and approved by the Board of Directors.
Article 3 The distribution and assessment of senior management personnel of the Company shall be based on the economic benefits of the enterprise and work objectives. Based on the company's annual operating plan and the work objectives of the senior management personnel in charge, a comprehensive assessment shall be conducted, and the annual compensation level of senior management personnel shall be determined based on the assessment results.
Article 4 The determination of the compensation of senior management personnel of the Company shall follow the following principles: (1) Adhere to the principle of distribution according to work and the combination of responsibility, authority, and benefit; (2) Implement the principle of linking income level with the company's benefits and work objectives, and coordinating with the company's sustainable development; (3) Adhere to the principle of combining compensation with the long-term interests of the company, ensuring the sustained growth of the main business, preventing short-term behavior, and promoting the long-term stable development of the company; (4) The principle of openness, fairness, and transparency for compensation standards, determined with reference to the current actual income level, which should be conducive to strengthening incentives and constraints, and also conform to the actual situation of the enterprise; (5) The principle of "rewards and punishments, with equal rewards and punishments" for compensation income; (6) Adhere to the principle of efficiency first and fairness considered, promoting harmonious interest relationships between senior management personnel and employees of the company.
Article 5 The annual compensation referred to in this system refers to the income obtained by senior management personnel of the Company before paying individual income tax.
Chapter 2 Total Salary Determination Mechanism and Management Organization
Article 6 The Compensation and Assessment Committee of the Board of Directors of the Company is the management organization responsible for assessing senior management personnel and preliminarily determining their compensation.
Article 7 The work content, responsibilities, and authority of the Compensation and Assessment Committee shall be in accordance with the "Rules of Procedure for the Compensation and Assessment Committee of the Board of Directors."
Chapter 3 Composition of Compensation
Article 8 The compensation of senior management personnel shall be determined based on the actual situation of the Company and the market salary level, and shall be composed of basic compensation, performance-based compensation, medium and long-term incentives, and insurance benefits. The specific amount shall be determined by the Board of Directors. Among them, the proportion of performance-based compensation shall generally not be less than fifty percent of the total of basic compensation and performance-based compensation.