Directors and Senior Management Remuneration Management System
Chapter 1 General Provisions
Article 1 To strengthen the remuneration management of directors and senior management of Shantou Institute of Ultrasonic Instruments Co., Ltd. (hereinafter referred to as "the Company"), promote the healthy, sustained, and stable development of the Company, in accordance with the "Company Law of the People's Republic of China," "Securities Law of the People's Republic of China," "Guidelines on Corporate Governance of Listed Companies," and other relevant laws, regulations, and normative documents, as well as the relevant provisions of the "Articles of Association of Shantou Institute of Ultrasonic Instruments Co., Ltd." (hereinafter referred to as "the Articles of Association"), and in combination with the actual situation of the Company, this system is hereby formulated.
Article 2 This system applies to directors and senior management as stipulated in the Articles of Association. Senior management refers to the general manager, executive deputy general manager, deputy general manager, secretary of the board, financial controller, and chief engineer of the Company, as well as other personnel included in the scope of senior management in the Articles of Association.
Article 3 The total salary of the Company's directors and senior management shall be determined by taking the previous year's total salary as a reference, combined with the Company's operating performance, individual performance, and the Company's future development plan.
Article 4 The remuneration distribution for the Company's directors and senior management shall follow the following basic principles: (1) Competitiveness Principle: Remuneration levels shall match the Company's scale and performance, while also considering market remuneration levels; (2) Unity of Responsibility, Rights, and Interests Principle: Remuneration levels shall match the value of the position and the responsibilities and obligations; (3) Principle of Combining Remuneration with the Company's Long-term Interests; (4) Principle of Balancing Incentives and Constraints: Remuneration payment shall be linked to performance evaluation, rewards and punishments, and incentive mechanisms.
Chapter 2 Management Structure
Article 5 The Chairman and the Remuneration and Appraisal Committee of the Board of Directors shall be responsible for organizing the performance evaluation of directors and senior management. The performance evaluation of independent directors shall be conducted through self-evaluation, mutual evaluation, and other methods.
Article 6 The Chairman and the Remuneration and Appraisal Committee of the Board of Directors shall be responsible for formulating and reviewing the remuneration policies and plans for directors and senior management, and clarifying the basis and specific composition of remuneration determination.
Article 7 Relevant meeting rules shall be handled in accordance with the "Implementation Rules of the Remuneration and Appraisal Committee of the Board of Directors" of this Company.