TOKYO, May 19 (Pulse News Wire) – EIZO Corporation (6737.T) announced today that its board of directors has approved the introduction of a Return on Equity (ROE)-based incentive system for non-audit committee directors. The move aims to enhance capital efficiency and align executive compensation more closely with shareholder interests.
Under the new system, which will take effect from March 2027, part of the performance-based remuneration will be tied to ROE metrics. Specifically, the compensation calculated based on consolidated operating profit will be adjusted according to an ROE evaluation coefficient ranging from 0.0 to 1.4, depending on annual ROE performance. An ROE target of ８% is set, with a base coefficient of 1.0 for achieving ROE of ８%. Higher coefficients up to 1.4 will apply for exceeding this target, while no ROE-linked bonus will be paid if ROE falls below ５%.
The company's existing remuneration structure comprises fixed salaries, short-term incentives linked to performance, and long-term equity-based incentives. The recent modification pertains solely to the short-term incentives, with no changes to total compensation levels or the mix of reward types. The ROE-linked component will account for approximately 0 to 7% of overall director compensation. This initiative underscores EIZO’s commitment to sustainable value creation through improved capital utilization and operational profitability.
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