Senior Executive Remuneration Policy｜E Ink Corporate Governance

Remuneration Policy

Senior Executive Remuneration Policy

The compensation of E Ink’s Chairman, CEO, President, and Vice Presidents (senior executives) is directly correlated with the Company’s business performance. In addition to "Guaranteed Compensation", the Company adopts a "Variable Compensation" system—such as employee remuneration and long-and short-term retention bonuses—as the main components of executive compensation proposals. These are closely tied to performance indicators, including financial, sustainability, and strategic outcomes. The Compensation Committee evaluates these indicators along with other relevant managerial considerations and submits recommendations to the Board of Directors for approval. For 2024, more than 60% of the total compensation for senior executives is in the form of variable compensation. Notably, over 30% of this variable compensation is structured as deferred bonuses, to be disbursed over the next one to two years.

Linkage Between Sustainability Performance and Executive Compensation

To fulfill the Company’s sustainability commitments and implement key actions in sustainable management, the variable compensation of the Chairman, CEO, President, and senior executives is linked to sustainability performance indicators, with assigned weightings to incentivize senior management in achieving the Company’s short-, medium-, and long-term goals.

Long-term Incentive Policy

Every year, E Ink sets goals for organizational performance and operational projects, focusing not only on shareholder interests but also incorporating comprehensive environmental, social, and corporate governance (sustainability) 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 vesting based on a predetermined proportion and schedule. The total vesting period spans five 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 or compensation, 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 management members are involved in illegal activities, violate professional ethics, demonstrate negligence or misconduct, or engage in improper actions that 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 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 2024, the senior executives have successfully reached the targets.

Note 1: (Annual Total Compensation of the Highest-paid Individual in the Company) / (Average Annual Total Compensation of all Employees, Excluding the Highest-paid Individual)

Note 2: (The Total Compensation of the Highest Individual in the Company) / (The median annual compensation of full-time non-managerial employees)

Note 3: (The Percentage Increase in the Annual Total Compensation of the Highest-paid Individual in the Company) / (The Median Percentage Increase in the Annual Total Compensation of all Non-managerial Employees). In 2024, the median employee compensation increased by 4. 95%, while the annual compensation of the highest-paid individual decreased by 10.8%.

Note 1: Senior Executives of E Ink (Taiwan Region)

Note 2: Shareholding value is calculated based on the closing stock price dated December 31, 2024.

Note 3: Multiple of Guaranteed (Fixed) Compensation=Average Stock Value held by Senior Executives/ Average Guaranteed (Fixed) compensation