Compensation Management System for Directors and Senior Management
Chapter 1 General Provisions
Article 1 To further improve the company's incentive and restraint mechanisms, fully mobilize the enthusiasm and creativity of directors and senior management, enhance overall operational efficiency, promote sustained and balanced growth in company benefits, and achieve the company's long-term development strategy, this management system is formulated in accordance with the "Company Law of the People's Republic of China," "Corporate Governance Guidelines for Listed Companies," and other relevant laws and regulations, as well as the "Articles of Association of Rongfa Nuclear Power Equipment Co., Ltd." (hereinafter referred to as the "Articles of Association"), and in conjunction with the company's actual situation.
Article 2 The scope of application of this system includes: (1) Directors of the company, including independent directors and non-independent directors; (2) Senior management personnel of the company, including the General Manager, Deputy General Managers, Financial Controller, Board Secretary, and other senior management personnel as stipulated in the "Articles of Association" and appointed by the Board of Directors.
Article 3 This system adheres to the following principles: (1) The compensation of directors and senior management shall be linked to their responsibilities, risks, performance, and capabilities; (2) Balance the interests of shareholders, the company, employees, and directors and senior management to prevent short-term behavior; (3) Appropriately separate the compensation of directors and senior management from the wage income of employees to establish a mechanism of checks and balances; (4) Reward and punish the performance-based compensation of directors and senior management equitably; (5) The payment of compensation to directors and senior management shall be legal and compliant, with audits and assessments conducted before realization.