Core Viewpoint - The recently issued "Guidelines for Performance Evaluation and Compensation Management of Fund Management Companies (Draft for Comments)" systematically strengthens the binding mechanism between compensation and performance for fund practitioners, emphasizing indicators such as "fund product performance" and "percentage of profitable investors," while highlighting the importance of self-purchase by executives and fund managers to better uphold the principle of prioritizing the interests of fund shareholders [1][15]. Group 1: Performance Evaluation System - The guidelines emphasize the establishment of a performance evaluation system centered on fund investment returns, combining quantitative and qualitative methods to determine performance indicators while maintaining consistency and continuity in these indicators [2][16]. - The guidelines require that the weight of long-term indicators (over three years) in the fund investment return metrics should not be less than 80% [4][18]. Group 2: Compensation Structure - For executives, the weight of fund investment return indicators in their evaluation should not be less than 50%. Differentiated assessments are implemented for fund managers, with performance indicators for actively managed equity fund managers requiring a weight of at least 80% [5][19]. - The guidelines stipulate that 30% of the total performance compensation for executives must be invested in the company's funds, while fund managers must invest at least 40% of their total performance compensation in the funds they manage [6][20]. Group 3: Salary Adjustment Mechanism - Fund managers whose performance lags behind the benchmark by more than 10 percentage points and have a negative profit margin over the past three years must face a salary reduction of no less than 30% [7][22]. - The guidelines establish a tiered performance salary adjustment mechanism based on the comparison of fund managers' performance against benchmarks and profit margins [8][22]. Group 4: Accountability Mechanism - The guidelines require the establishment of a strict accountability mechanism for salary management, which includes but is not limited to salary suspension, recovery, and deduction [9][23]. - The accountability mechanism applies to both current and former employees, ensuring that those who fail to fulfill their responsibilities or engage in misconduct are held accountable [9][23]. Group 5: Dividend Policy - Fund management companies are advised to establish a scientific and reasonable dividend mechanism, with a focus on reducing dividend frequency and proportion for funds with poor performance and significant investor losses over the past three years [10][24]. Group 6: Compensation Distribution Structure - The guidelines call for optimizing the compensation distribution structure to favor frontline and grassroots employees, while controlling the average salary increase for senior management [11][25]. Group 7: Long-term Incentive Mechanism - Fund management companies are encouraged to adopt long-term incentive mechanisms that align with the company's development and the long-term interests of fund shareholders, such as equity, options, and dividend rights [12][26]. Group 8: Basic Principles - The guidelines adhere to the principle of prioritizing the interests of fund shareholders and aim to establish a scientific, prudent, and efficient performance evaluation and compensation management mechanism [13][28]. - Performance evaluation indicators should include both quantitative metrics, such as fund product performance and investor profit and loss, and qualitative metrics, including professional capability, compliance risk management, and social responsibility [14][29].

Core Viewpoint - The recently issued "Guidelines for Performance Assessment and Compensation Management of Fund Management Companies (Draft for Comments)" emphasizes the binding mechanism between compensation and performance for fund personnel, aiming to prioritize the interests of fund shareholders and promote the sustainable development of the public fund industry [2][4]. Summary by Sections Performance Assessment System - The guidelines advocate for a performance assessment system centered on fund investment returns, combining quantitative and qualitative methods to determine performance indicators while ensuring consistency and continuity [4][17]. Key Performance Indicators - The guidelines stress the importance of indicators such as "fund product performance" and "profitable investor ratio" [5][17]. - For quantitative assessment, the weight of long-term indicators (over three years) in fund investment returns should not be less than 80% [6]. - For senior management, the weight of fund investment return indicators should be at least 50% [7]. Self-Purchase Requirements - Senior management must use at least 30% of their total performance compensation to purchase the company's funds, while fund managers must invest at least 40% of their performance compensation [9]. Salary Adjustment Mechanism - Fund managers whose performance lags the benchmark by over 10% and have negative profit margins must face a salary reduction of at least 30% [10]. Accountability Mechanism - The guidelines require the establishment of a strict accountability mechanism for compensation management, applicable even to departing employees [11]. Dividend Distribution Constraints - Fund management companies should lower dividend frequency and ratios for funds with poor performance and significant investor losses over the past three years [12]. Compensation Structure Optimization - The guidelines call for an optimized compensation distribution structure, favoring frontline and grassroots employees while controlling salary increases for senior management [14]. Long-term Incentive Mechanism - Fund management companies are encouraged to implement long-term incentive mechanisms linked to the company's development and the long-term interests of fund shareholders [15]. Basic Principles - The guidelines adhere to principles that align with national policies, prioritize shareholder interests, effectively motivate personnel, and balance the interests of shareholders and other stakeholders [17].

Core Viewpoint - The company has established a compensation and performance evaluation system that is closely linked to business results, aiming to enhance talent management and incentive mechanisms [1] Group 1 - The company has developed a performance assessment mechanism that is strongly tied to operational outcomes [1] - The company plans to expand new channels for development and actively seek new opportunities within the industry [1]