Chapter 1 General Principles
Article 1
To improve the compensation management of directors and senior management at Junwei Electronics 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 the "Company Law of the People's Republic of China," "Code of Corporate Governance for Listed Companies," and relevant provisions of the "Articles of Association of Junwei Electronics Technology Co., Ltd." (hereinafter referred to as "the Articles of Association").
Article 2
This system applies to the following personnel:
- Company directors: including independent directors and non-independent directors (including employee representative directors);
- Company senior management: including the manager, deputy manager, board secretary, financial director (financial officer), and other senior management as stipulated in the Articles of Association.
Article 3
The management of directors' and senior management's compensation follows these principles:
- Fairness principle: income levels should align with the Company's scale and performance, as well as market compensation levels;
- Unity of responsibility, authority, and benefits principle: compensation should correspond to the value of the position and the extent of responsibilities;
- Long-term development principle: compensation should align with the goals of the Company's sustainable and healthy development;
- Balance of incentives and constraints principle: compensation distribution should be linked to assessments, rewards, penalties, and incentive mechanisms.
Chapter 2 Compensation Management Organization
Article 4
The Company's board of directors' compensation and assessment committee is responsible for formulating assessment standards for directors and senior management, conducting assessments, organizing performance evaluations, and formulating and reviewing compensation policies and plans for directors and senior management. The committee will make recommendations to the board on the following matters:
- Compensation for directors and senior management;
- Formulation or modification of equity incentive plans and employee stock ownership plans, including conditions for beneficiaries to exercise rights;
- Plans for stock ownership arrangements for directors and senior management in proposed spin-offs of subsidiaries;
- Other matters as stipulated by laws, regulations, and the Articles of Association.