TOKYO, May 14 (Pulse News Wire) – Amada CO.,LTD. (6113.T) decided at its board meeting today to continue and partially revise its performance-linked equity incentive program for directors and executive officers, pending approval at its upcoming annual shareholders' meeting scheduled for June 26, 2026.
Under the revised plan, eligible directors and non-executive officers who do not concurrently hold director positions will participate. The proportion of equity compensation within their remuneration packages will increase, aiming to enhance long-term corporate value and align interests with shareholders. The plan's structure remains based on the Board Incentive Plan Trust (BIPT), which distributes shares or cash equivalents tied to performance targets.
The BIPT will operate through five fiscal years ending March 31, 2031, with an annual cap of ¥1 billion on trust contributions and a limit of 400,000 points per year for award distribution. Points are calculated based on key performance indicators such as revenue, operating profit, and ROE, with each point corresponding to one share of AMADA stock. In case of significant misconduct by participating executives, the company reserves the right to, Trust operations will conclude either by transferring residual assets back to the company or donating excess funds to unrelated organizations, depending on whether the trust continues beyond its initial term.
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