002788SZSE

Remuneration Management System for Directors

Luyan Pharmaceutical Co., Ltd.··2p

✨ AI Summary

This document establishes a remuneration management system for company directors to clarify responsibilities and enhance governance. The system aligns director pay with operational standards, fairness, and regulations. The board of directors, supported by an independent remuneration committee, determines the system. Remuneration includes fixed salaries and performance-based incentives linked to company and individual performance, with annual reviews and transparent communication of any adjustments.

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Full Translation

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Chapter One General Principles

Article 1

To further improve the remuneration management system for directors of the company (hereinafter referred to as "the Company"), this system is established to clarify the responsibilities and work standards of directors, and to enhance the governance of the Company.

Article 2

This system refers to the management of the Company's director remuneration.

Article 3

The principles for the Company's remuneration management system are as follows:

  1. The remuneration should align with the Company's operational standards;
  2. It should follow the principles of fairness and motivation;
  3. It should comply with relevant regulations.

Article 4

In the event of significant changes in the external environment, the Company should adjust the remuneration system in a timely manner to reflect the current situation.

Chapter Two Remuneration Management Structure

Article 5

The Company’s board of directors is responsible for determining the remuneration management system. The board of directors shall establish a remuneration committee to consider remuneration proposals.

Article 6

The Company’s remuneration committee is responsible for the work related to director remuneration, including the formulation of remuneration policies and performance evaluation methods.

Article 7

The Company’s remuneration committee shall report its work to the board of directors regularly.

Article 8

The Company shall ensure that the remuneration committee operates independently and effectively.

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