Ichikawa to Amend Equity-Based Compensation Plan

TOKYO, May 20 (Pulse News Wire) – Ichikawa CO.,LTD. (3513.T) announced today that its board of directors resolved to amend its equity-based compensation plan, known as Board Benefit Trust-Restricted Stock (BBT-RS).

The amendment includes imposing transfer restrictions on shares granted to executives until their retirement. The revised plan will be presented to shareholders for approval at the company's annual general meeting scheduled for June 25, 2026. Under the existing Board Benefit Trust (BBT) system, which was introduced in 2018 and last amended in 2021, executives received unrestricted stock grants based on performance metrics.

The new BBT-RS plan seeks to enhance alignment between executive compensation and long-term shareholder value by linking rewards more closely to company performance and share price appreciation while also exposing executives to potential downside risks associated with declining stock prices. The company plans to allocate approximately 157 million yen initially and additional funds as needed during the two-year initial implementation period from April 1, 2027, through March 31, 2028. Executives will receive points annually based on their roles and performance achievements, with point limits set at 1,000 per fiscal year for directors and 750 for senior executives.

Points will be converted into company shares or cash equivalents upon retirement, subject to certain conditions outlined in the plan.