Chapter 1 General Principles
Article 1
To standardize the compensation management of directors and senior management at Hongrid Technology Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, effectively motivate the work enthusiasm of the Company's directors and senior management, and enhance the operational management efficiency of the Company, this system is formulated in accordance with relevant national laws, administrative regulations, the Articles of Association of Hongrid Technology Co., Ltd. (hereinafter referred to as "the Articles of Association"), and the Guidelines for Corporate Governance of Listed Companies, combined with the actual situation of the Company.
Article 2
This system applies to directors (including independent directors, non-independent directors, and employee directors) and senior management as stipulated in the Articles of Association.
Article 3
The compensation system for the Company's directors and senior management follows the principles below:
- Competitiveness principle: The compensation provided by the Company is competitive compared to the income levels of similar positions in the market.
- Principle of distribution according to labor and the combination of responsibility, authority, and benefits.
- Principle linked to company performance and work objectives.
- Principle combining short-term and long-term incentives.
- Principle of openness, fairness, and transparency.
Chapter 2 Management Institutions
Article 4
The compensation plans for directors and senior management are drafted by the Compensation and Assessment Committee of the Board of Directors and implemented after being reviewed and approved by the Board of Directors and the shareholders' meeting. The Company's Human Resources Department, Finance Department, and other relevant functional departments shall cooperate with the Compensation and Assessment Committee in the formulation and implementation of the compensation plans for directors and senior management.