Salary Management Measures of ADAMA Ltd.
ContentsChapter I General ProvisionsChapter II Management Bodies and ResponsibilitiesChapter III Salary Budget ManagementChapter IV Salary Use ManagementChapter V Salary Settlement ManagementChapter VI Supplementary Provisions
Chapter I General ProvisionsArticle 1 These Measures are formulated to establish and improve the salary determinationand growth mechanism of ADAMA Ltd. (hereinafter referred to as "the Company") that iscompatible with the labor market and linked to the financial performance, to enhance thevitality and competitiveness of the enterprise, and to facilitate high-quality development ofthe enterprise.Article 2 The term " salary" as used in these Measures refers to the total amount of laborremuneration directly paid to all employees who have established labor relations with theCompany, including basic salary, bonuses, allowances, subsidies, overtime payment andsalary paid under special circumstances, etc.Article 3 These Measures shall be applied to the Company and subsidiaries within the scopeof consolidated financial statements.Article 4 The Company advocates the pursuit of excellence of the value concept, employeecompensation according to their position value, personal ability and reference to the marketsalary level to determine, encourage employees to create value, to achieve the commondevelopment of enterprises and employees.Article 5 The salary management shall abide by the following principles:
(1) Compliant management and effective control: The salary management adheres to thecompliance of policies, the continuity of management rules and the fairness of distribution.It insists to combine total budget amount management and process management.
(2) Be strategy-oriented and encourage innovation: Give full play to the leading function ofsalary distribution, leading companies at all levels to continuously explore and innovate,carry out differentiated incentives, and stimulate the vitality of workforce.
(3) Be market-oriented and strengthen benchmarking: Through regular marketbenchmarking researches, continuously optimize the structure and distribution of salary,and make the salary distribution more scientific and reasonable.
Chapter II Management Bodies and ResponsibilitiesArticle 6 The Company’s Management Level
(1) Be responsible for approving the Company's annual salary budget.
(2) Be responsible for approving Company's annual bonus, salary adjustment and all kindsof incentive plans and programs.Article 7 Human Resources (HR) Department
(1) Carry out centralized management of the Company’s salary with specific departments.Follow the superior unit’s policies and requirements to formulate the salary managementsystem.
(2) Be responsible for formulating the distribution principle and adjustment plan of thesalary.
(3) Be responsible for properly preparing the Company’s annual labor cost budget based onthe Company’s strategic development plans and the increase and reduction of personnel andreporting it to the Company’s Financial Department.
(4) Be responsible for reviewing the salary budget and allocation principle of eachsubsidiary and supervising and guiding the use of the salary in each year.Article 8 Human Resource Departments of SubsidiariesBe responsible for the salary budget and implementation control of the subsidiary. Beresponsible for formulating the subsidiary’s salary adjustment plans and submitting them tothe Company’s HR Dept. for approval.
Chapter III Salary Budget ManagementArticle 9 Annual salary budget should be properly prepared and effective control andsupervision be carried out according to HR management requirements.Article 10 Follow superior organization budget guidelines to formulate salary budgets, andproperly plan the use of salary in the next year. Establish a salary growth mechanism that iscompatible with labor market of the enterprise and fully mobilize the enthusiasm ofemployees. Continuously optimize the labor cost input and the output efficiency, andcontinuously enhance the vitality of the enterprise.Article 11 The preparation of salary budget by Company's headquarters and subsidiariesshould follow the corporate guidelines approved by superior organization for each salarybudgeting process.
Chapter IV Salary Use ManagementArticle 12 All subsidiaries of the Company should strictly control the use of salary andshould not exceed the budget.Article 13 Each subsidiary should carry out routine salary distribution, annual bonuspayment, salary adjustment and other salary distribution in accordance with the relevantpolicy guidelines issued by the HR Department of the Company every year, and can onlybe cashed after completing the approval process in accordance with the relevant approvalprocedures.Article 14 If the salary budget of a subsidiary needs to be adjusted, it needs to be approvedseparately from the budget and be re-submitted to the HR department for review. The HRdepartment will re-report the adjusted and approved budget to the Company's Finance andBudget Department to adjust the Company's overall budget in a timely manner.Article 15 During distribution of salary, the key teams and backbone staff of excellentperformance should be appropriately tilted compensation resources, so that the outstandingperformance can get higher returns.
Chapter V Salary Settlement ManagementArticle 16 The Company shall pay attention to the actual payment of the total annual salaryof each subsidiary. And each subsidiary shall complete the estimation of salary usage
progress and annual salary value based on its annual salary usage plan and its annual benefitestimation.
Chapter VI Supplementary ProvisionsArticle 17 HR Department of the Company shall be responsible for the interpretation ofthese Measures.Article 18 These Measures shall be implemented on the date of approval by the Board ofDirectors.