NANKAI CHEMICAL COMPANY,LIMITED [4040.T]
TOKYO, May 14 (Pulse News Wire) – Nankai Chemical Company,limited (4040.T) announced today that its board of directors approved amendments to the equity-based compensation plan for executives, effective from fiscal year 2027 through 2028 and subsequent five-year cycles. The changes aim to enhance long-term performance and align executive rewards more closely with shareholder interests.
Under the revised plan, annual point allocations for executives will now consist of fixed role-specific points plus performance-linked points based on consolidated ordinary profit targets. Performance coefficients will adjust according to achievement rates against set goals for consolidated net income and return on equity. Points will be converted into shares upon meeting certain conditions, subject to vesting restrictions during tenure. The company plans to allocate up to ¥1.2 billion annually towards purchasing shares for the trust fund, with adjustments made based on remaining shares and cash within the trust.
Share delivery will occur post-performance review, contingent on signing a non-transfer agreement until retirement. In exceptional cases, such as death or overseas assignments, cash payouts equivalent to share value may be granted instead. Additionally, voting rights attached to shares held in the trust will remain unexercised throughout the trust's duration to maintain neutrality in management decisions. Dividends received from trust-held shares will be used to support the trust’s operations and expenses.
Upon termination, residual assets will either be donated to unrelated public entities or distributed among incumbent executives proportionally.
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