NITTO DENKO CORPORATION [6988.T]
TOKYO, Apr 27 (Pulse News Wire) – Nitto Denko Corporation (6988.T) announced today that its board of directors has approved the introduction of a performance-based restricted share plan aimed at enhancing long-term incentives and aligning executive compensation with shareholder value. The plan will be presented for approval at the company's 161st Ordinary General Meeting scheduled for June 19, 2026.
Under the new system, external directors excluded, eligible executives will receive performance-linked restricted shares based on their achievement of predefined targets during a designated evaluation period. The company will issue cash-settled awards convertible into restricted ordinary shares upon vesting. Additionally, the existing equity incentive programs—mid-term performance-linked grants decided at the 153rd Ordinary General Meeting held on June 22, 2018, and the long-term performance-linked grants decided at the same meeting—will be discontinued after the final payout in July 2025.
The total number of restricted shares allocated annually to participating executives will not exceed 1 million shares. The monetary value of such allocations, calculated based on the stock price at issuance, will be capped at 1 million shares per annum. Notably, the new scheme does not cover remuneration for concurrent employee-directors' employment roles but is expected to apply to executive officers as well.
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