Chapter 1 General Principles
Article 1
Shandong Molong Petroleum Machinery Co., Ltd. (hereinafter referred to as "the Company") establishes this system to standardize the compensation management of directors and senior management, create an effective incentive and restraint mechanism, and fully motivate directors and senior management to actively perform their duties, promoting the healthy, sustainable, and stable development of the Company in accordance with the "Company Law of the People's Republic of China," "Code of Corporate Governance for Listed Companies," and relevant provisions of the "Articles of Association of Shandong Molong Petroleum Machinery Co., Ltd." (hereinafter referred to as "the Articles of Association"), combined with the actual situation of the Company.
Article 2
This system applies to the directors and senior management as stipulated in the Articles of Association.
- The term "directors" refers to all current members of the Company's board of directors during the implementation of this system, including executive directors (including employee representative directors), non-executive directors, and independent non-executive directors.
- The term "senior management" refers to the general manager, deputy general managers, board secretary, financial officer, and other senior management recognized by the board of directors.
Article 3
The compensation management system follows the principles below:
- Fairness Principle: Reflects that income levels are commensurate with the Company's scale and performance.
- Unity of Responsibility, Authority, and Interests Principle: Reflects that compensation corresponds to the value of the position and the extent of responsibilities.
- Long-term Development Principle: Reflects that compensation aligns with the goals of the Company's sustainable and healthy development.
- Balance of Incentives and Constraints Principle: Compensation distribution is closely linked to assessments, performance evaluations, and reward and punishment mechanisms.