Chapter 1 General Principles
Article 1
To standardize the compensation and performance management of directors and senior management at Shanghai Yaoji Technology Co., Ltd. (hereinafter referred to as "the Company"), establish a comprehensive incentive and restraint mechanism, align individual compensation with company performance, and improve operational efficiency and management standards, this system is formulated in accordance with the Company Law of the People's Republic of China, the Guidelines for Corporate Governance of Listed Companies, and relevant laws and regulations, combined with the actual situation of the Company.
Article 2
This system applies to the Company's directors and senior management directly appointed by the board of directors.
Article 3
Compensation distribution follows these principles:
- Fairness Principle: Reflects income levels that correspond to the Company's scale and performance, and aligns with external compensation levels;
- Unity of Responsibility, Authority, and Interests Principle: Reflects the alignment of compensation with the value of the position and the extent of responsibilities;
- Long-term Development Principle: Aligns compensation with the goals of the Company's sustainable and healthy development;
- Balance of Incentives and Constraints Principle: Links compensation distribution with assessment, rewards, and penalties, and ties it to the Company's incentive mechanism.
Chapter 2 Management Institutions
Article 4
The shareholders' meeting is responsible for reviewing the compensation matters of directors, while the board of directors is responsible for reviewing the compensation matters of senior management.
Article 5
The Compensation and Assessment Committee of the board of directors, authorized by the board, is responsible for formulating the compensation standards and plans for directors and senior management; reviewing the performance of directors and senior management; and supervising the implementation of the Company's compensation system.
Article 6
The human resources and finance departments of the Company cooperate in the specific implementation of the compensation plan.