COSCO SHIPPING Holdings has released a comprehensive remuneration framework that will take effect retroactively from 1 January 2026 following approval at the 2025 Annual General Meeting. The new Measures for the Remuneration Management of Directors and Senior Management replace all previous compensation regulations and introduce tighter alignment between pay, corporate strategy and value creation.
Key structural changes 1. Governance hierarchy • Director remuneration will be reviewed by the general meeting, while the Board of Directors will decide on pay for senior management. • The Board’s remuneration committee will draft remuneration and assessment plans, supervise execution and submit proposals for Board approval. • The Human Resources Department and Board Office are tasked with day-to-day implementation.
2. Director compensation • Independent directors will receive an annual allowance plus meeting fees; specific amounts will be proposed by the remuneration committee and ratified by shareholders. • Directors nominated by the controlling shareholder will not receive any payment from the company. • Executive directors already receiving managerial pay will not draw additional director fees.
3. Senior management package • Annual salary comprises five parts: base salary, performance-based annual bonus, three-year term incentive, discretionary Board award and medium- to long-term incentive income. • The variable annual bonus must represent at least 50% of total cash remuneration (base salary + bonus). Ninety per cent will be paid in the current year, with the remaining 10% settled after results are audited. • ESG metrics are incorporated as mandatory indicators in performance appraisal. Bonuses will not exceed the prior year if overall performance or economic profit declines; they will be reduced if the company moves from profit to loss. • Term incentives are linked to three-year assessments, while Board awards recognise exceptional contributions in areas such as operational efficiency, restructuring and technological innovation. • Medium- to long-term incentives (equity, profit-sharing or similar) require separate shareholder approval and will be performance-based.
4. Pay adjustment and clawback mechanisms • Base salaries may be adjusted annually based on comprehensive assessments. • Compensation will be prorated for partial-year service due to role changes. • The company can withhold, suspend or claw back bonuses and long-term incentives in cases of financial restatement, misconduct, or other loss-causing breaches.
The Board of Directors retains interpretative authority over the new measures, and COSCO SHIPPING Holdings will continue to follow all relevant PRC laws, listing-place regulations and its Articles of Association in administering the policy.
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