Kyushu Financial Group Begins Review of Performance-Based Compensation Plan

TOKYO, May 14 (Pulse News Wire) – Kyushu Financial Group,inc. (7180.T) has initiated a review to introduce a performance-based compensation plan for its employees aimed at aligning their rewards with the company's stock price and operational achievements.

The move follows the successful implementation of a similar program for executives in June 2023, which was designed to enhance long-term performance and share value alignment among management. Key features of the proposed system include a combination of cash and equity incentives tied to predefined performance metrics. Cash bonuses would reward short-term contributions, while equity awards would encourage a longer-term perspective focused on shareholder interests.

Additionally, the company plans to explore the use of a Share Incentive Trust (J-ESOP) to facilitate future stock grants based on accumulated points according to established regulations. The review will cover employees across Kyushu Financial Group and its subsidiaries, including Fukuoka Bank Co., Ltd. and Kagoshima Bank Co., Ltd.

Specific details such as the timing and amount of the J-ESOP setup will be disclosed once finalized.