Chapter 1 General Principles
Article 1
To establish and improve the incentive and restraint mechanism for the directors and senior management of Shenzhen Dazhu CNC Technology Co., Ltd. (hereinafter referred to as "the Company"), enhance corporate governance structure, attract and retain top talent, and promote the long-term healthy development of the Company, this system is formulated based on the "Company Law of the People's Republic of China" (hereinafter referred to as "the Company Law"), "Securities Law of the People's Republic of China," "Code of Corporate Governance for Listed Companies" (hereinafter referred to as "the Governance Code"), "Articles of Association of Shenzhen Dazhu CNC Technology Co., Ltd." (hereinafter referred to as "the Articles of Association"), and other relevant laws, regulations, and normative documents, combined with the actual situation of the Company.
Article 2
This system applies to the following personnel:
- Directors: including non-independent directors (both internal directors serving in the Company and external directors not serving in the Company) and independent directors;
- Senior management: including the general manager, deputy general managers, financial officer, board secretary, and other senior management personnel as stipulated in the Articles of Association.
Article 3
The salary management for the Company’s directors and senior management (hereinafter collectively referred to as "Directors and Senior Management") follows the principles below:
- Principle of balancing incentives and constraints: The compensation system should be both incentivizing, stimulating innovation, and constraining, preventing decision-making risks;
- Principle of unifying personal contributions with long-term value: Compensation distribution is closely linked to job value, individual performance, and the achievement of the Company's long-term strategic goals, focusing on sustainable development;
- Principle of legality, compliance, and fairness: Strictly comply with laws, regulations, and regulatory requirements, with open and fair decision-making processes and sufficient information disclosure;
- Principle of combining industry competition with the Company’s actual situation: Reference industry compensation levels and the Company’s development stage and financial status to maintain external competitiveness and internal fairness in compensation.