Nippon Signal Company,Limited [6741.T]
TOKYO, May 12 (Pulse News Wire) – Nippon Signal Company,limited (6741.T) announced today that its board of directors has decided to introduce an equity-based compensation system aimed at enhancing corporate value and fostering closer alignment with shareholders. The proposal will be presented at the upcoming 143rd Annual General Meeting scheduled for June 19, 2026.
Under the new system, eligible directors will receive either ordinary shares or cash-settled share awards worth up to ¥100 million annually. The total number of ordinary shares allocated per director will be capped at 200,000 shares per year. Share issuance prices will be based on the closing price of Nippon Signal's ordinary shares on the Tokyo Stock Exchange on the day preceding the respective board resolution.
Additionally, the company plans to impose restrictions on the transferability of these shares for a certain period. In cases where significant violations of laws or internal regulations occur during the restriction period, or if major accounting irregularities or substantial losses arise, the company reserves the right to reclaim the awarded shares or demand equivalent payment from the recipients. Approval from shareholders is conditional for implementing this new compensation structure within the existing annual remuneration framework approved at the previous AGM held on June 23, 2023.
If approved, the new system will take effect immediately upon implementation.
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