Chapter 1 General Principles
Article 1
To further standardize the compensation and assessment management of directors and senior management at Fujian Yuanli Activated Carbon Co., Ltd. (hereinafter referred to as "the Company"), and to establish a sound incentive and restraint mechanism to enhance management levels, the Company formulates this system in accordance with the Company Law of the People's Republic of China, the Guidelines for Corporate Governance of Listed Companies, and other relevant laws and regulations, as well as the Articles of Association, considering the actual situation of the Company.
Article 2
This system applies to the Company's directors and senior management as defined in the Articles of Association.
Article 3
The compensation management system for the Company's directors and senior management follows these principles:
- Adhering to the principle of combining labor distribution with responsibility, authority, and benefits;
- Implementing the principle of linking income levels to the Company's operational performance;
- Upholding the principle of "rewards and punishments, with emphasis on both incentives and constraints";
- Ensuring that compensation aligns with the Company's long-term interests and sustainable development.
Article 4
Salary total determination mechanism: The Company conducts budget management for the total salary of directors and senior management. The total salary for directors and senior management is determined comprehensively based on salary standards, the Company's operational performance, external market salary levels, and individual performance.