Chapter 1 General Principles
Article 1
To further improve the compensation management for directors and senior management of Guai Bao Pet Food Group Co., Ltd. (hereinafter referred to as "the Company"), establish a scientific and effective incentive and restraint mechanism, effectively motivate the Company's directors and senior management, enhance the Company's operational management level, and ensure the achievement of the Company's strategic development goals, 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 other relevant laws, regulations, and the Company's Articles of Association, combined with the actual situation of the Company.
Article 2
This system applies to the Company's directors and senior management.
Article 3
The Company's compensation system follows the principles below:
- Performance Linkage Principle: Compensation should align with market development and match the Company's operational performance and individual performance.
- Sustainable Development Principle: Compensation should coordinate with the Company's sustainable development.
- Equivalence of Responsibility, Authority, and Benefits Principle: Compensation should be consistent with job value, responsibilities, and risks undertaken, and coordinate with the compensation distribution ratio of ordinary employees.
- Balance of Incentives and Restraints Principle: Compensation should match individual performance, reflecting a balance of incentives and restraints, and equal rewards and penalties.
Chapter 2 Compensation Management Organization
Article 4
The compensation plan for directors must be reviewed and approved by the board of directors and then submitted to the shareholders' meeting for approval. The compensation plan for senior management must be reviewed and approved by the board of directors.
Article 5
The Compensation and Assessment Committee of the Company's board of directors, authorized by the board, is responsible for formulating and reviewing the compensation decision-making mechanism, decision-making process, payment and recovery arrangements, and other compensation policies and plans for the Company's directors and senior management; responsible for formulating assessment standards, reviewing the performance of the Company's directors and senior management, and conducting annual assessments; and responsible for supervising the implementation of the Company's compensation system.
Article 6
The Company's Human Resources Center, Finance Center, Board Office, and other relevant departments shall cooperate with the Compensation and Assessment Committee of the board of directors to carry out specific implementation work based on this system.
Chapter 3 Compensation Standards
Article 7
The compensation for the Company's directors and senior management should align with market development, match the Company's operational performance and individual performance, and coordinate with the Company's sustainable development.