China Securities Industry Association revised and released the "Guidelines for Securities Firms to Establish a Sound Compensation System": Focus on long-term stability and add long-cycle assessment requirements.

The overall idea of this revision is, firstly, to adhere to the goal orientation. It implements the requirements of the new "nine national articles" to "improve the securities fund industry salary management system that is compatible with performance, business nature, contribution level, compliance risk control, and social culture", further optimizing the principle objectives, guiding securities companies to establish a compensation management mechanism that balances incentives and constraints, efficiency and fairness, long-term and short-term goals. Secondly, it is based on optimization and improvement. This revision keeps the overall framework unchanged, refines and improves areas such as the responsibilities of the board of directors and management, establishing mechanisms for determining total compensation, deferred payment application, recovery methods, etc., further strengthening the applicability and operability of the rules. Thirdly, it emphasizes long-term stability. It adds requirements for long-term performance assessments, specifies requirements for major business departments and core personnel, performance assessment indicators, and strengthens the construction of the long-term incentive and constraint mechanism, solidifying the company's main responsibilities.