TOKYO, May 08 (Pulse News Wire) – Nitta Corporation (5186.T) announced today that its board of directors has approved the introduction of a post-issuance performance-based equity compensation plan (the “plan”). The plan aims to enhance long-term corporate value and promote greater alignment with shareholders' interests.
It will be presented for shareholder approval at the upcoming 97th Annual General Meeting scheduled for June 25, 2026. Under the plan, eligible directors will receive restricted shares based on the achievement of predefined performance metrics during evaluation periods set by the board. The initial evaluation period spans two fiscal years from April 01, 2026, to March 31, 2028, focusing on operating profit margin and total shareholder return relative to TOPIX. Directors will either receive unrestricted shares without monetary payment or contribute cash rewards received from the company as capital contributions to acquire restricted shares. Shareholders previously approved annual limits for cash remuneration and restricted share grants for directors up to ¥300 million and ¥100 million respectively.
At the upcoming meeting, Nitta plans to seek additional approval for the new equity compensation framework separate from existing remuneration caps. Restricted shares granted under the plan will carry vesting restrictions until the recipient ceases to hold their position as a director or another designated role within the company. The aggregate number of restricted shares issued annually will not exceed 30,000 shares shares, with a total annual value cap of ¥150 million. The company reserves the right to adjust share issuance quantities due to unforeseen circumstances such as stock splits or consolidations. In addition, the company intends to extend similar post-issuance performance-linked equity compensation arrangements to executive officers contingent upon shareholder endorsement of the plan at the forthcoming general meeting.
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