Senior Executive Remuneration Policy｜E Ink Corporate Governance

To attract and retain key talents and to achieve the Company's mid-term and long-term goals, E Ink implements an Employee Stock Ownership Plan (ESOP) or Employee Restricted Stock. 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 five years. Every year, the Company develops organizational and project based goals with performance matrixes , which are linked to the employee stock options or Employee Restricted Stock. The company will grant the team members stock options according to the strategies and the impact to the organizational performance. This approach aims to encourage employees and the management team to work together, driving towards the achievement of the Company's goals and creating enhanced value for both the Company and its shareholders.

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.

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 2022, the senior executives have successfully reached the targets.