TOKYO, May 18 (Pulse News Wire) – NSK Ltd. (6471.T) announced significant changes to its executive compensation plan aimed at enhancing alignment with long-term shareholder value.
At a remuneration committee meeting held today, the company finalized key performance indicators and equity-based reward structures for executives. Under the revised policy, fixed salaries will remain consistent while variable components such as short-term and long-term performance-linked bonuses will be adjusted based on metrics like operating profit margin, cash flow, CO2 reduction targets, safety improvements, and engagement scores. Equity rewards will now vest during tenure rather than upon retirement, subject to holding restrictions until departure.
Points earned through stock grants will be converted into shares and paid out post-retirement, contingent on certain conditions. Additionally, the company introduced stricter clawback provisions for performance-based payments in cases of major compliance breaches or adjustments to underlying performance metrics. The revamped system also includes enhanced transparency measures and competitive benchmarking against peers in the manufacturing sector.
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