Compensation System

Compensation of the Company’s senior management executives includes two parts, namely, base pay and performance bonus. Those who report to the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council obtain compensation according to “Provisional Regulations on Compensation Management of Responsible People in Central Enterprises” and opinion replied by SASAC of the State Council. Compensation of other senior management executives should be conducted accord with “Sinopec Corp. Senior Executives Compensation Measures for the Implementation”. Sinopec set Key Performance Index (KPI) as the measuring benchmark for executives' performance. Performance evaluation system relies on profiles provided by management information system and strives for a fair and transparent process of performance evaluation.

Post-wage-based compensation system is applied on rank-and-file staff in Sinopec. According to the Company’s guidance, affiliates, institutes and subsidiaries can decide their own distribution way along with their production and operation features. Through continuous internal allocation system reform, the Company tries to form a competitive compensation system with three characteristics, namely, linking personal income and performance together, combining short-term incentives with long–term ones, and developing incentives and restriction simultaneously.