Senior Executive Remuneration Policy｜E Ink Corporate Governance

Remuneration Policy

E Ink's remuneration policy of senior executives, including the Chairman, CEO, President, and Vice Presidents, is highly linked to the operational performance and sustainability indicators of the company. The performance and the relevant remuneration, including salary, bonuses, profit sharing, short-term and long-term incentives, will all be reviewed by the Remuneration Committee before they are submitted to the Board of Directors for approval.

In addition to the monthly "guaranteed compensation", the "variable compensation" is evaluated and decided in accordance with the performance results of organization goals. The Remuneration Committee will evaluate and prescribe the remuneration recommendations by adopting the performance oriented compensation tools firstly, including profit sharing and the deferred retention bonuses, in every year end. In 2023, variable compensation for senior executives accounted for over 60% of their total compensation; more than 30% of this variable compensation was in the form of deferred bonuses or shares to be paid out over the next 1-2 years.

Long-term Incentive Policy

Every year, E Ink sets goals for organizational performance and operational project, focusing not only on shareholder interests but also incorporating comprehensive environmental, social, and corporate governance (ESG) indicators. The company issues Employee Stock Options (ESOP) or Employee Restricted Stock, granting them to team members based on the strategic responsibilities of managers and their impact on organizational performance. The performance period is set for a maximum of 3 years, employees are eligible to exercise the stock options after vested based on a predetermined proportion and schedule. The total vesting period spans 5 years. Additionally, to attract and retain senior executives and to lead the team with performance-oriented approaches, the Company provides bonuses equivalent to approximately 20% of their annual salary, deferred for 1-2 years after achieving the Company's operational goals. Through various incentive compensation mechanism over different timeframes, E Ink aims to work hand in hand with the senior management team to achieve the company's short, medium, and long-term operational goals, thereby creating greater value for the company and its shareholders.

Clawback Policy

In cases where executive managements are involved in illegal activities, violate professional ethics, demonstrate negligence or misconduct, or their improper actions result in business risks that cause financial or reputational losses to the Company, the Board of Directors may approve adjustments to the distribution proportion of rewards or initiate a clawback of previously granted incentives.

Senior Executives’ Stock Ownership Policy

To enhance corporate governance and operational efficiency, as well as to strengthen the alignment between the performance, operational results of senior executives, and long-term interests of shareholders, a high-level executive stock ownership policy has been implemented. According to this policy, the Chairman, CEO and President are required to hold stocks with a value of at least 10 times their guaranteed compensation, while other senior executives must

hold stocks with a value of at least 5 times their guaranteed compensation. As of 2023, the senior executives have successfully reached the targets.

Compensation Status

Note 1: Annual Total Compensation Ratio = Annual Total Compensation of the Highest-paid Individual in the Organization / Median Annual Total Compensation of all Employees, Excluding the Highest-paid Individual

Note 2: (The total compensation of the highest individual in the organization)/(The median annual income of full-time nonmanagerial employees)

Shareholding Status

Note 3: Senior Executives of E Ink Holding (Taiwan Region)

Note 4: Shareholding value is calculated based on the closing stock price dated December 29, 2023.

Note 5: Guaranteed salary multiple = Average stock value held by senior executives / Average guaranteed compensation.