002300SZSE

Compensation Management System for Directors and Senior Management

Sun Cable Co., Ltd.·

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This document outlines the compensation management system for directors and senior management of Fujian Nanping Sun Cable Co., Ltd. It establishes principles for determining compensation based on company performance, market conditions, and individual contributions, aiming to align interests and maximize shareholder value. The system details the roles of the Compensation and Assessment Committee, decision-making processes, and mechanisms for compensation adjustment and recovery.

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Fujian Nanping Sun Cable Co., Ltd. Compensation Management System for Directors and Senior Management

Chapter 1 General Provisions

Article 1 To further improve the corporate governance structure of Fujian Nanping Sun Cable Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific incentive and restraint mechanism, effectively mobilize the enthusiasm of directors and senior management, and maximize shareholder interests. In accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies," and other relevant laws, regulations, normative documents, and the "Articles of Association," and in conjunction with the Company's actual situation, this system is formulated.

Article 2 The Company's directors and senior management include the following personnel: (I) Directors: Including independent directors, internal directors (directors who are employed by the Company and actually participate in the Company's daily operations), and external directors (non-independent directors who hold no other positions in the Company except for director and member of the Board's special committees). (II) Senior Management: Including the President, Vice Presidents, Secretary of the Board, Chief Financial Officer, Chief Engineer, and other senior management personnel as stipulated in the "Articles of Association."

Article 3 This system adheres to the following principles: (I) Compensation standards are based on indicators such as the Company's scale, operating conditions, performance targets, work capabilities, and industry and regional compensation levels. They should reflect competitive compensation levels while also conforming to the Company's actual situation. (II) The principle of linking compensation to the Company's management performance and work objectives, combining individual compensation with the Company's long-term interests, preventing short-term behavior, and promoting the Company's sustainable operation and development. (III) The principle of equal rights, responsibilities, and benefits, adhering to the principle of distribution according to work. (IV) The principle of emphasizing both incentives and restraints, and equal rewards and punishments. (V) The compensation levels of the Company's directors and senior management should be reasonably linked to the Company's overall operating efficiency, industry compensation levels, and the growth rate of ordinary employee wages. Compensation distribution should lean towards key positions, front-line production, and urgently needed high-level, high-skilled talents, promoting an increase in the compensation level of ordinary employees and achieving the common development of the Company and its employees.

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