Chapter 1 General Provisions
Article 1 To further improve the compensation management of the company's directors and senior management, establish a scientific and effective incentive and restraint mechanism, fully mobilize the enthusiasm and creativity of directors and senior management, and in accordance with the "Company Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," and other relevant laws and regulations, and the "Articles of Association," and in combination with the company's actual situation, this system is hereby formulated.
Article 2 This system applies to directors and senior management as stipulated in the Articles of Association.
Article 3 The compensation management system for the company's directors and senior management follows the following principles:
- Principle of fairness: Income levels are consistent with the company's scale and performance, and are in line with market compensation levels.
- Principle of unity of responsibility, rights, and interests: Compensation is commensurate with the value of the position and the extent of responsibilities fulfilled.
- Principle of reflecting the company's long-term interests: Consistent with the goal of the company's sustainable and healthy development.
- Principle of balancing incentives and restraints: Compensation is linked to assessment, rewards and punishments, and incentive mechanisms.
Chapter 2 Management Structure
Article 4 The Compensation and Remuneration Committee is responsible for formulating the assessment standards for directors and senior management and conducting assessments. It formulates and reviews the compensation decision-making mechanisms, decision-making processes, payment and clawback arrangements, and other compensation policies and plans for directors and senior management.