TOKYO, Apr 22 (Pulse News Wire) – Aozora Bank,ltd. (8304.T) announced today that its board of directors approved the introduction of a performance-based equity compensation plan for executives.
The plan, which aims to align executive remuneration with company performance and enhance long-term incentives, will be presented to shareholders for approval at the annual general meeting scheduled for June 23. Under the new scheme, eligible directors will receive restricted stock grants based on predefined performance metrics over evaluation periods set by the board. The total value of such grants will be capped at ¥250 million per annum, with up to 150,000 shares potentially being issued annually.
Existing stock option programs will be phased out upon shareholder approval of the new plan. The bank's ordinary shares granted under this program will carry restrictions prohibiting their sale or use as collateral until the director leaves their position. Additionally, the bank reserves the right to reclaim shares or equivalent cash payments if significant accounting errors or fraud are discovered post-restriction lifting.
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