Hankyu Hanshin Holdings, Inc. [9042.T]
TOKYO, May 15 (Pulse News Wire) – Hankyu Hanshin Holdings,inc. (9042.T) resolved today during its board meeting to amend its executive compensation system.
The changes will be proposed at the 188th Annual General Meeting scheduled for June 18. Key modifications include expanding performance-linked bonuses to all operating directors and introducing a short-term incentive component alongside long-term equity-based incentives. Under the revised structure, cash compensation will now feature a new performance-linked bonus scheme based on key financial metrics such as ROE, operating profit, and net income attributable to parent shareholders. The upper limit for monetary remuneration will shift from monthly to annual caps, increasing to up to ¥380 million per annum for external directors.
Additionally, the equity-based performance plan will broaden eligibility to all domestic resident operating directors and incorporate non-financial KPIs focusing on employee engagement scores, female management ratios, new hires, and GHG emissions reduction rates. The total funding cap over three fiscal years will rise to ¥1.170 billion (average ¥390 million annually). Share grants will also increase to an average of 60,000 points per year compared to the previous 80,000 points. Moreover, the amended plan introduces clawback provisions allowing for the recovery of granted shares if certain violations occur post-delivery.
The Board Incentive Plan trust remains integral, offering stock awards contingent upon fulfilling beneficiary criteria and subject to vesting upon retirement.
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