TOKYO, May 18 (Pulse News Wire) – Nichias Corporation (5393.T) announced today that its board of directors meeting held, decided to amend the director compensation structure aimed at enhancing long-term corporate value and fostering greater value-sharing with shareholders. The revised proposal will be presented at the upcoming 210th Ordinary General Meeting of Shareholders scheduled for June 26, 2026.
Under the proposed changes, the monthly cap on director remuneration, which was last approved at the 181st Ordinary General Meeting of Shareholders on June 27, 1997, will shift to an annual limit of up to 500 million yen per annum, with an additional stipulation of up to 60 million yen for external directors. The amendment also introduces performance-linked cash bonuses based on yearly operational metrics, such as consolidated operating profit and ESG indicators. This revision aligns with Nichias' mid-term management plan “Shukumi 130” set from March 2023 to March 2027, focusing on achieving sustainability goals and ensuring continuous improvement in corporate value.
By linking executive compensation more closely to strategic objectives and performance outcomes, Nichias aims to enhance transparency and accountability within governance structures while driving towards the realization of its mid-term plans. In addition to setting clearer incentives for sustainable growth, the amended system includes a balanced reward framework comprising basic salaries, stock-based rewards, and newly introduced performance-linked bonuses. Basic salaries will be determined based on position and tenure, while performance-linked bonuses will vary according to achievement levels against predefined targets.
External directors will receive only basic salaries due to their independent roles.
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