Aligning Officers’ and Shareholders’ Interests Through a Performance-Linked Stock Compensation Scheme

「The performance-linked stock compensation plan was established as a new medium- to long-term incentive, and a proposal to introduce the plan was approved at the 98th Annual General Meeting of Shareholders held on 21 June 2024. To clarify the linkage with share value and promote management focused on improving medium- to long-term performance and corporate value, the plan was implemented in August 2024.」

「Based on a resolution at the 98th Annual General Meeting of Shareholders held on 21 June 2024, the Company introduced the performance-linked stock compensation plan, the Stock Benefit Trust for Officers, for directors other than outside directors and directors who are Audit and Supervisory Committee members, executive officers and fellows, excluding non-residents of Japan. The plan, collectively referred to as the “directors and officers” unless otherwise stated, is intended to clarify the linkage between their compensation and the Company’s performance and share value, and to encourage their contribution to improving medium- to long-term performance and increasing corporate value by enabling them to share with shareholders not only the benefits of a rise in the share price but also the risk of a decline.」