Longi Green Energy Technology Co.Ltd(601012)
Management measures for the assessment of the implementation of stock option and restricted stock incentive plan in 2022
In order to ensure the smooth implementation of the 2022 stock option and restricted stock incentive plan of Longi Green Energy Technology Co.Ltd(601012) (hereinafter referred to as "the company"), further improve the corporate governance structure, form a good and balanced value distribution system, and motivate the directors, senior managers, core managers Core technical (business) personnel and other key employees of the company carry out their work in good faith and diligence to ensure the steady improvement of the company's performance and the realization of the company's development strategy and business objectives. In accordance with the provisions of the company law, the securities law, the measures for the Administration of equity incentive of listed companies, other laws, regulations, normative documents and the articles of association, The administrative measures for the implementation and assessment of stock option and restricted stock incentive plan in Longi Green Energy Technology Co.Ltd(601012) 2022 (hereinafter referred to as "the measures") is hereby formulated.
1、 Assessment purpose
Further improve the corporate governance structure, establish and improve the company's incentive and restraint mechanism, ensure the smooth implementation of the equity incentive plan, and give full play to the role of equity incentive to the greatest extent, so as to ensure the realization of the company's development strategy and business objectives.
2、 Assessment principle
The assessment and evaluation must adhere to the principles of fairness, openness and fairness, and evaluate in strict accordance with these measures and the performance of the assessment objects, so as to realize the close combination of the equity incentive plan with the work performance and contribution of the incentive objects, so as to improve the management performance and maximize the interests of the company and all shareholders.
3、 Assessment scope
These measures are applicable to all incentive objects participating in the company's equity incentive plan, including but not limited to the company's directors, senior managers, core managers and core technical (business) personnel working in the company's current core business system at the time of announcement of the incentive plan.
4、 Assessment organization
The remuneration and assessment committee of the board of directors of the company is responsible for leading and organizing the assessment, and assessing the directors, senior managers, core managers, core technical (business) personnel and other incentive objects involved in the equity incentive plan; Human resources, finance and other relevant departments of the company are responsible for the collection and sorting of relevant assessment data and materials, and are responsible for the authenticity and reliability of the data.
5、 Performance evaluation indicators and standards
(I) performance assessment requirements at the company level
The incentive plan will conduct performance assessment annually in three fiscal years from 2022 to 2024, and once in each fiscal year, so as to achieve the performance assessment goal as one of the conditions for the exercise / lifting of restrictions on sales of incentive objects.
The annual performance assessment objectives of stock options / restricted stocks granted are shown in the table below:
Performance assessment objectives during exercise / lifting of restrictions
The growth rate of the company's business income in the first period of 2020 shall not be lower than 80% in 2022;
The second exercise / lifting of restrictions on sale period is based on the company's operating revenue in 2020, and the growth rate of the company's operating revenue in 2023 is not less than 120%;
The third exercise / lifting of restrictions on sale period is based on the company's operating revenue in 2020, and the growth rate of the company's operating revenue in 2024 is not less than 175%.
Note: the above "operating income" indicators are calculated based on the operating income in the audited consolidated statements of listed companies.
If the performance level of the company in the current period fails to meet the above corresponding performance assessment target conditions, all incentive objects shall not exercise the stock options planned to be exercised in the current period, which shall be cancelled by the company; The restricted shares of all incentive objects that are planned to be released in the current assessment period shall not be released, and the company shall repurchase and cancel them according to the grant price plus the interest of current deposits in the bank in the same period.
(II) performance appraisal requirements at individual level
During the implementation of this incentive plan, the company will conduct annual performance appraisal on the incentive objects every year in accordance with the company's employee performance management system and relevant regulations, and take meeting the annual performance appraisal target as one of the conditions for the exercise / lifting of restrictions on sales of the incentive objects.
The annual performance assessment is conducted once a year, and the performance assessment grade is determined according to the achievement of various assessment indicators. The performance grade is divided into five levels: outstanding, excellent, good, need to be improved and unqualified. When the company's performance appraisal meets the conditions for exercise / release of restrictions, only incentive objects with outstanding, excellent and good individual annual performance appraisal performance can exercise the stock options corresponding to the exercise period and release the restricted shares corresponding to the release of restrictions. When the individual's annual performance appraisal grade is to be improved, unqualified or no performance appraisal results, the incentive object shall not exercise the stock options planned to be exercised during the exercise period, and this part of the stock options shall be cancelled by the company; The incentive object shall not lift the restriction on the sale of restricted shares that are planned to be lifted during the period of lifting the restriction, and this part of restricted shares shall be repurchased and cancelled by the company in accordance with the provisions of the incentive plan.
1. Implementation measures for performance appraisal of senior managers
(1) Setting of assessment indicators
The chairman sets the company's annual business objectives according to the company's annual production and operation objectives and management policies. The president's office organizes and holds the president's office meeting to formulate the work indicators and scoring methods of senior managers. The appraisee formulates the annual performance appraisal objectives with the chairman of the board of directors or his direct supervisor at the beginning of each year or at the beginning of each year.
(2) Assessment content
① The assessment of senior managers includes work performance dimension and other assessment items. The work performance dimension adopts the organizational performance evaluation results of the managed organization (the organizational performance evaluation of business unit includes a series of indicators such as business indicators, customer development indicators and key work, and the organizational performance evaluation of functional unit includes a series of indicators such as strategic support indicators and business support indicators), Other assessment items are mainly set according to management needs (including but not limited to organizational atmosphere, core competence, etc.), and the items and weights of each dimension are subject to the specific objectives of the current year's performance assessment.
② The superior can also set the "veto item" indicator according to the management needs, which does not account for the appraisal weight; "Veto items" may include: major work mistakes, corruption, major safety accidents, illegal operations, etc. If the "rejection item" fails to meet the standard, it can affect the reduction of the employee's personal performance results, or directly determine the personal performance as "need to be improved" or "unqualified".
2. Implementation measures for assessment of other incentive objects:
(1) Set assessment indicators
The person in charge of the employee's department shall decompose the Department's business plan downward according to the company's annual production and operation objectives, and set the annual assessment objectives and evaluation methods of subordinate employees.
(2) Assessment content
Key performance indicators: refer to the data to measure the work achievements of employees in each position through their efforts, and the key performance indicators of the undertaking department.
Key work index: refers to the index to measure the completion of the annual key work plan of the Department undertaken by the employees of each post, especially the key special work.
Behavior improvement index: refers to the index to measure the behavior performance of employees in various posts in terms of work attitude, ideology and work style, including work discipline, customer orientation, collaboration, work initiative, self-learning improvement and other items.
Each department shall set the "veto item" indicator separately according to the management needs, which does not account for the assessment weight.
6、 Assessment period and times
1. Assessment period
The fiscal year before the exercise / release period of stock options / restricted shares granted to the incentive object.
2. Assessment times
During the implementation of the equity incentive plan, the assessment shall be conducted once a year.
7、 Assessment procedure
Under the guidance of the remuneration and appraisal committee of the board of directors, the human resources management center of the company is responsible for the specific appraisal work, saves the appraisal results, forms a performance appraisal report on this basis and submits it to the remuneration and appraisal committee of the board of directors.
8、 Assessment result management
1. Feedback and appeal of assessment results
The appraisee has the right to know his own appraisal results, and the direct supervisor of the appraisee shall timely notify the appraisee of the appraisal results after the appraisal work is completed.
If the appraisee has any objection to his / her appraisal results, he / she can communicate with the human resources department for settlement. If it cannot be solved through communication, the assessed object can appeal to the salary and assessment committee within 3 working days after learning the assessment results, and the salary and assessment committee will review and determine the final assessment results or grades.
2. Archive assessment results
After the assessment, the assessment results shall be archived and saved as confidential data.
9、 Supplementary Provisions
1. The board of directors is responsible for formulating, interpreting and revising these measures.
2. These measures have been deliberated and approved by the general meeting of shareholders of the company and will be implemented after the equity incentive plan takes effect.
Longi Green Energy Technology Co.Ltd(601012) board of directors March 10, 2022
