Ningbo Yokogawa Precision Industry Co., Ltd. Senior Management Compensation Management System
Chapter 1 General Provisions
Article 1 To further improve the corporate governance structure of Ningbo Yokogawa Precision Industry Co., Ltd. (hereinafter referred to as the "Company" or "this Company"), strengthen the compensation management of senior management, fully mobilize the enthusiasm, initiative, and creativity of senior management, and establish a senior management compensation incentive and restraint mechanism adapted to the modern corporate system. In accordance with the "Company Law of the People's Republic of China," the "Securities Law of the People's Republic of China," the "Guiding Opinions on the Articles of Association of Listed Companies," the "Guiding Opinions on Corporate Governance of Listed Companies," the "Shenzhen Stock Exchange Listed Company Self-Regulatory Management Guidelines No. 2 - Norms for the Operation of GEM Listed Companies," and other relevant laws, regulations, normative documents, and the "Articles of Association" of this Company, and in combination with the actual situation of the Company, this system is formulated.
Article 2 This system applies to senior management as defined in the "Articles of Association."
Article 3 The compensation management of senior management of the Company shall adhere to the following principles: (1) The principle of openness, fairness, and transparency; (2) The principle of combining with the long-term interests of the Company; (3) The principle of combining responsibility, rights, and benefits; (4) The principle of combining with the actual operating conditions and operating goals of the Company; (5) The principle of balancing incentives and constraints.
Chapter 2 Total Salary Budget Determination Mechanism and Compensation Management Organization
Article 4 The Company implements budget management for the total salary of senior management. Based on the total salary of senior management in the previous year, the total budget for the current year shall be determined according to the principles of benefit-based growth range, efficiency-based adjustment of growth amplitude, and level-based control of growth targets.
Article 5 The Company shall reasonably determine the proportion of compensation for directors, senior management, and ordinary employees based on factors such as industry standards, development strategies, and job value, promoting the allocation of compensation towards key positions, frontline production, and urgently needed high-level, high-skilled talents, and improving the compensation level of ordinary employees.