Chapter 1 General Principles
Article 1
To enhance the operational standards of Nanjing Boshang Optoelectronics Co., Ltd. (hereinafter referred to as "the Company") and to further improve the compensation management system for the Company's directors and senior management, this system is established to create a scientific and effective incentive and restraint mechanism. This aims to motivate the directors and senior management, improve operational management efficiency, and promote the Company's sustainable, healthy, and stable development, in accordance with the "Company Law of the People's Republic of China," "Guidelines for the Governance of Listed Companies," and relevant provisions of the "Articles of Association of Nanjing Boshang Optoelectronics Co., Ltd." (hereinafter referred to as "the Articles of Association"), while considering the actual situation of the Company.
Article 2
This system applies to the Company's directors and senior management, specifically as follows:
- Company directors: including non-independent directors and independent directors;
- Company senior management: including the general manager, deputy general managers, financial officer, board secretary, and other senior management as stipulated in the Articles of Association.
Article 3
The compensation management for the Company's directors and senior management follows these principles:
- Fairness principle, reflecting that income levels are consistent with the Company's scale and performance, and align with external compensation levels;
- Principle of unity of rights and responsibilities, reflecting that compensation corresponds to the value of the position and the extent of responsibilities;
- Long-term development principle, reflecting that compensation aligns with the goals of the Company's sustainable and healthy development;
- Principle of balancing incentives and constraints, reflecting that compensation distribution is linked to assessments, rewards, and penalties.
Article 4
The mechanism for determining the total salary of the Company follows principles of performance linkage, strategic orientation, fairness and reasonableness, market adaptation, sustainable development, and distribution based on labor and responsibilities. It reasonably determines the compensation distribution ratio for directors, senior management, and ordinary employees, considering industry standards, inflation levels, operational efficiency, development strategies, and organizational adjustments, promoting a tilt in compensation distribution towards key positions, frontline production, and urgently needed high-level, high-skilled talents, thereby enhancing the compensation level of ordinary employees.