Hangzhou Hikvision Digital Technology Co., Ltd. Management System for Directors and Senior Management Remuneration
Chapter 1 General Provisions
Article 1 To further improve the remuneration management system for directors and senior management of Hangzhou Hikvision Digital Technology Co., Ltd. (hereinafter referred to as the "Company"), establish a scientific and effective incentive and restraint mechanism, promote directors and senior management to faithfully and diligently perform their duties, improve the company's operational and management level, and promote the long-term, healthy, and stable development of the company, in accordance with the "Company Law of the People's Republic of China" (hereinafter referred to as the "Company Law"), the "Guiding Principles for Corporate Governance of Listed Companies," the "Stock Listing Rules of the Shenzhen Stock Exchange," and other laws, administrative regulations, departmental rules, and relevant regulatory rules, as well as the "Articles of Association of Hangzhou Hikvision Digital Technology Co., Ltd." (hereinafter referred to as the "Articles of Association"), and combined with the company's actual situation, this system is formulated.
Article 2 This system applies to all directors and senior management of the company. The remuneration management of independent directors shall, in addition to the provisions of this system, also comply with the special regulations of relevant laws and regulations for independent directors.
Article 3 The remuneration distribution for directors and senior management follows the following basic principles: (1) Principle of balancing incentives and restraints: Remuneration levels shall be matched with the company's operating performance, individual performance, and risk responsibilities, fully mobilizing the enthusiasm of management while strengthening responsibility constraints and preventing short-term behavior; (2) Principle of market-based adaptation: The remuneration provided by the company shall be competitive compared to the income levels of equivalent positions in the market; (3) Principle of aligning with the company's long-term development: The overall remuneration level shall be coordinated with the company's sustainable development; (4) Principle of fairness and justice: Remuneration gaps shall be determined based on the value of the position, the weight of responsibilities, and the degree of contribution, reflecting the unity of responsibilities, rights, benefits, and work objectives; (5) Principle of compliance: Strictly adhere to national laws, regulations, regulatory rules, and the requirements of the "Articles of Association," standardize the processes for remuneration decision-making, accounting, distribution, and information disclosure, and ensure that remuneration management is legal and compliant.
Chapter 2 Remuneration Management Organization and Responsibilities