1. Query basis for executive compensation of listed companies:
According to the No.2 Annual Report on the Contents and Format of Information Disclosure of Companies Offering Securities to the Public issued by the CSRC, listed companies should disclose the remuneration and equity incentives of senior executives in detail in their annual reports:
Decision-making procedures of directors, supervisors and senior managers' remuneration, basis for determining remuneration and actual payment of remuneration. Disclosure of the total pre-tax remuneration of current directors, supervisors and senior managers during the reporting period (including basic salary, bonuses, allowances, subsidies, employee benefits and various insurance premiums, provident funds, annuities and other forms of remuneration received from the company). Total remuneration of all directors, supervisors and senior managers. In addition, the equity incentives obtained are listed separately according to the number of exercisable shares, the number of exercised shares, the exercise price and the market price at the end of the reporting period.
The company shall list the names of directors and supervisors who do not receive remuneration and allowances from the company, and indicate whether they receive remuneration and allowances from shareholder units or other affiliated units.
2. What is a listed company?
A listed company refers to a joint stock limited company whose publicly issued shares are listed and traded on the stock exchange with the approval of the securities management department authorized by the State Council or the State Council according to the provisions of Section 5 of Chapter 4 of the Company Law of People's Republic of China (PRC). The so-called unlisted company refers to a joint stock limited company whose shares are not listed and traded on the stock exchange.
A listed company is a joint stock limited company, which must meet certain conditions besides being approved to be listed and traded on the stock exchange. After the revision of the Company Law and the Securities Law, more enterprises will become listed companies and companies whose corporate bonds are listed and traded.