Chapter 1 General Principles
Article 1
To further standardize the compensation management of directors and senior management at Zhejiang Songyuan Automotive Safety Systems Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, ensure that directors effectively fulfill their responsibilities and obligations, motivate senior management, improve operational efficiency, and promote the stable and sustainable development of the Company, this system is formulated in accordance with the Securities Law of the People's Republic of China, the Shenzhen Stock Exchange GEM Listing Rules, and other relevant regulations, as well as the Articles of Association of Zhejiang Songyuan Automotive Safety Systems 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 following personnel:
- Members of the Board of Directors: including non-independent directors (including employee representative directors) and independent directors;
- Senior management: including the general manager, deputy general managers, board secretary, financial officer, and other personnel recognized by the Articles of Association.
Article 3
The compensation system for the Company's directors and senior management follows these principles:
- Strategic Orientation Principle: Compensation is closely linked to the Company's strategic goals, promoting long-term stable development;
- Performance Linkage Principle: Responsibilities, rights, and benefits are combined, with compensation levels closely related to individual performance and company performance, fully reflecting the principle of distribution according to labor;
- Fairness and Justice Principle: Ensure fairness and justice in the determination and distribution of compensation, balancing internal equity and external competitiveness;
- Balanced Incentives and Constraints Principle: Reasonably set the compensation structure to provide attractive incentives while clearly defining constraints to prevent short-term behavior.
Chapter 2 Compensation Management Organization
Article 4
The Compensation and Assessment Committee of the Board of Directors is responsible for formulating assessment standards for directors and senior management, conducting assessments, and developing and reviewing compensation policies and plans for directors and senior management, as well as making recommendations to the Board regarding compensation matters.