Incentives to Enhance Corporate Value through Performance-Linked and Share Acquisition-Based Compensation

「The payout varies from 0% to 144% depending on achievement levels for the company-wide ROE, company-wide operating profit and segment operating profit targets.」

「Since fiscal 2019, the Company has introduced a trust-based performance-linked stock compensation plan for directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and executive officers at or above the level of senior managing executive officer who are not directors (collectively, the “Directors and Executive Officers”). The plan is intended to clarify the linkage between their compensation and the Company’s medium- to long-term performance and share value, and to heighten their motivation to contribute to improving the Company’s medium- to long-term performance and increasing corporate value by sharing with shareholders the benefits and risks associated with movements in the share price.」

「Performance-linked metrics ① and ② vary from 0% to 144% depending on achievement levels for the ROE and segment operating profit targets.」

「At a meeting held on 26 February 2021, the Board of Directors resolved the policy for determining the details of individual compensation and other remuneration for directors, excluding outside directors and directors who are Audit and Supervisory Committee members (hereinafter, “Executive Directors”).」

「Beginning in the previous consolidated fiscal year, the Company has introduced a trust-based performance-linked stock compensation plan for directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and executive officers at or above the level of senior managing executive officer who are not directors (collectively, the “Directors and Executive Officers”). The plan is intended to clarify the linkage between their compensation and the Company’s medium- to long-term performance and share value, and to heighten their motivation to contribute to improving the Company’s medium- to long-term performance and increasing corporate value by sharing with shareholders the benefits and risks associated with movements in the share price.」

「Beginning in the second quarter, the Company has introduced a trust-based performance-linked stock compensation plan for directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and executive officers at or above the level of senior managing executive officer who are not directors (collectively, the “Directors and Executive Officers”). The plan is intended to clarify the linkage between their compensation and the Company’s medium- to long-term performance and share value, and to heighten their motivation to contribute to improving the Company’s medium- to long-term performance and increasing corporate value by sharing with shareholders the benefits and risks associated with movements in the share price.」

「Beginning in the second quarter of the current consolidated fiscal year, the Company has introduced a trust-based performance-linked stock compensation plan for directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and executive officers at or above the level of senior managing executive officer who are not directors (collectively, the “Directors and Executive Officers”). The plan is intended to clarify the linkage between their compensation and the Company’s medium- to long-term performance and share value, and to heighten their motivation to contribute to improving the Company’s medium- to long-term performance and increasing corporate value by sharing with shareholders the benefits and risks associated with movements in the share price.」

「Compensation and other remuneration for directors, excluding directors who are Audit and Supervisory Committee members, comprises fixed basic compensation determined by position and additional compensation linked to company performance, within the limits approved by resolution of the general meeting of shareholders. Additional compensation is determined by applying a compensation table, using consolidated ordinary profit as the primary indicator and taking into account indicators including consolidated operating profit and the total payout ratio.」

「Compensation and other remuneration for directors, excluding directors who are Audit and Supervisory Committee members, comprises fixed basic compensation determined by position and additional compensation linked to company performance, within the limits approved by resolution of the general meeting of shareholders. Additional compensation is determined by applying a compensation table, using consolidated ordinary profit as the primary indicator and taking into account indicators including consolidated operating profit and the total payout ratio. In addition, to further encourage contributions to enhancing corporate value over the medium to long term, the company incorporates share-purchase-based compensation, under which a certain percentage of total compensation is contributed toward the purchase of company shares, thereby providing incentives to enhance corporate value.」