Guotai Haitong Securities Co., Ltd. (GTHT) released its Basic Remuneration Management Rules, setting out a unified pay framework for headquarters, branches and subsidiaries. The document establishes a market-oriented, risk-adjusted compensation system aimed at supporting stable operations and long-term value creation.

Key principles emphasise alignment with national strategies, comprehensive risk management, industry culture and market benchmarks. Remuneration is defined broadly to include both monetary and non-monetary compensation and applies to all employees across the group.

Compensation Structure • Four-part pay mix: basic salary, performance-based remuneration, benefits and allowances, plus medium-/long-term incentives. • Performance-based pay is “completely variable”, directly linked to appraisal outcomes and subject to upward or downward adjustment. • For directors and senior management, performance-based pay must represent at least 50% of the total of basic salary and performance-based remuneration.

Performance and Risk Controls • Appraisal indicators cover economic benefit, compliance and risk control, and social responsibility. A one-vote veto applies to material compliance or risk events. • Personnel in key positions are subject to multi-year evaluations including indicators with a term of no less than three years. • GTHT prohibits direct revenue-sharing, project-based pay links and other mechanisms that encourage short-term risk-taking.

Deferral, Clawback and Recourse • At least 40% of annual performance awards for risk-influencing staff must be deferred and paid in equal instalments from year T+2 to T+4. • Payment termination, clawback and recourse provisions apply to senior management and other responsible staff in cases of legal violations, excessive risk exposure or misconduct, and remain enforceable after resignation or retirement.

Governance and Disclosure • The board of directors holds primary responsibility for remuneration governance, with the Remuneration, Appraisal and Nomination Committee overseeing plan design, budget approval and senior management assessments. • GTHT will disclose remuneration philosophy, implementation status and director/senior management pay in annual reports, while remuneration management is integrated into the firm’s reputation-risk framework.

Implementation The rules take effect upon shareholder approval and serve as the master policy for subsequent unit-level remuneration measures. GTHT will review and adjust its remuneration strategy in line with market cycles, industry trends and national policy guidance, with preference for value-creating and core frontline roles.