TOKYO, May 18 (Pulse News Wire) – Nikon Corporation (7731.T) announced today that its board of directors, held on May 18, approved amendments to the equity compensation plan for non-audit committee directors. The proposed changes aim to enhance incentives for achieving mid-term business goals and improve long-term corporate value and shareholder alignment.
The revised plan will be presented for approval at the upcoming 162nd Ordinary General Meeting of Shareholders scheduled for June 26. Under the amended Restricted Stock Unit (RSU) program, the delivery timing of RSUs will shift from during the fiscal year to post-fiscal year-end. Additionally, certain circumstances such as early resignation prior to RSU issuance will result in cash payments instead of restricted shares. The Performance Share Units (PSU) scheme will also undergo adjustments, changing how performance-based share grants are calculated and delivered.
Specifically, the number of PSUs granted will now be determined based on individual roles and performance metrics linked to the company's mid-term strategic objectives. The calculation formula includes a performance coefficient derived from key indicators set forth in the mid-term business plan, reviewed annually by the Remuneration Review Committee. Targets for evaluation include Return on Invested Capital (ROIC), Return on Equity (ROE), Total Shareholder Return (TSR) relative to peers, and sustainability criteria. The proposed changes will apply to executive officers and similar positions, with plans to extend similar modifications to the equity compensation structure for executive fellows and equivalent roles if the proposal is ratified at the shareholders' meeting.
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