Shandong Longji Machinery Co., Ltd. Compensation Management System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To standardize the compensation management of directors and senior management of Shandong Longji Machinery Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, effectively mobilize the enthusiasm and creativity of the Company's directors and senior management, improve the Company's operational efficiency, and further promote the Company's stable and sustainable development, this system is formulated in accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Corporate Governance Guidelines for Listed Companies," and the "Articles of Association of Shandong Longji Machinery Co., Ltd." (hereinafter referred to as the "Articles of Association"), as well as other relevant laws, regulations, and normative documents, combined with the Company's actual situation.
Article 2 This system applies to all directors (including non-independent directors and independent directors) and senior management of the Company. Senior management refers to the general manager, deputy general managers, board secretary, and financial controller of the Company.
Article 3 The compensation system for the Company's directors and senior management follows the following principles: (1) The principle of matching compensation levels with the Company's operating scale and performance, while also considering market compensation levels; (2) The principle of matching compensation levels with the value of the position and the responsibilities involved; (3) The principle of matching compensation levels with the Company's long-term interests and the goal of sustainable healthy development; (4) The principle of reflecting both incentives and constraints, with equal rewards and punishments, and linking compensation payments to performance appraisal, rewards and punishments, and incentive mechanisms.