Hokuhoku Financial Group to Distribute Shares Based on Performance Criteria

TOKYO, Jun 23 (Pulse News Wire) – Hokuhoku Financial Group, Inc. (8377.S) resolved to distribute 17,945 shares of its common stock to executives based on performance criteria set during a board meeting held.

The distribution will take place on July 23, 2026, with each share valued at ¥6,814. This distribution includes 5 directors, 13 subsidiary directors, and 22 subsidiary executive officers, totaling 40 individuals but accounting for 35 unique recipients due to overlapping roles. The total value of the distribution is ¥122.3 million. The purpose of this distribution is to align executive compensation with company performance, encouraging sustained growth and enhancing shareholder value.

The performance metrics used for evaluation cover the fiscal year ending March 31, 2026, focusing on key indicators such as consolidated ROE, TSR, GX-related investment amounts, and the ratio of female management positions. Each recipient will face certain restrictions on transferring these shares until their respective positions are vacated, with the restriction period lasting from July 23, 2026, to the date of position termination. Additionally, the company reserves the right to acquire these restricted shares free of charge upon expiration of the restriction period if they remain untransferred. The valuation of the distributed shares is determined based on the closing price of Hokuhoku Financial Group's ordinary shares on the Tokyo Stock Exchange on June 22, 2026, which was ¥6,814.

This price reflects a reasonable deviation from average prices over recent months, ensuring fairness and alignment with the company’s market value.