TOKYO, Mar 31 (Pulse News Wire) – Hitachi,ltd. (6501.T) announced today that its compensation committee approved revisions to the equity-based remuneration system for executives and senior managers, as well as certain group company officers.
The changes aim to strengthen the alignment between executive compensation and long-term enterprise value and shareholder returns. Under the revised plan, Hitachi will transition from Restricted Stock Units (RSUs) and Performance Share Units (PSUs) to a unified global framework based solely on RSUs and PSUs. The RSU program grants units equivalent to ordinary shares, vesting in thirds over three fiscal years, while PSUs are contingent upon achieving key performance indicators (KPIs). KPIs focus on Total Shareholder Return (TSR) growth relative to market indices and competitors, as well as ROIC targets outlined in Inspire 2027.
Additionally, Hitachi will introduce a new structure where PSUs granted post-revision will not carry transfer restrictions, enhancing clarity in linking performance outcomes to rewards. The allocation ratio remains unchanged, with RSUs accounting for approximately 30% and PSU allocations split evenly between price-conditioned PSUs and those tied to ROIC and sustainability goals, each comprising 70% and 10% respectively. Hitachi also noted that existing RS programs initiated prior to the revision will continue under previous conditions, while RSU programs introduced in fiscal 2024 for directors will remain unaffected. Looking ahead, Hitachi acknowledged potential risks affecting future plans and strategies, including economic fluctuations, geopolitical events, regulatory changes, and technological challenges.
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