TOKYO, May 13 (Pulse News Wire) – OBAYASHI CORPORATION (1802.T) resolved today to revise its Board Incentive Plan (BIP) trust scheme, which provides stock-based compensation to directors and executive officers. The proposed changes aim to enhance long-term performance incentives by aligning payouts solely with medium-to-long term performance metrics rather than short-term goals.
The plan also mandates that recipients share both gains and losses tied to stock price movements until their departure, ensuring sustained motivation towards boosting enterprise value. The revised scheme will cover three fiscal years ending March 2029, with a potential extension for another three-year cycle post-maturity. Under the updated framework, OBAYASHI will contribute up to ¥3 billion across the three-year period, subject to shareholder approval at the upcoming annual general meeting scheduled for June 29, 2026.
Each director will receive up to 500,000 points annually, equivalent to a percentage of outstanding shares based on pre-determined benchmarks set forth in the mid-term business plans. Additionally, the company will continue to acquire OBAYASHI shares through the trust mechanism without diluting existing shareholders' interests. Shares will be purchased from the open market, and dividend distributions within the trust will follow regular procedures.
Upon termination of the trust, residual assets will revert to OBAYASHI, barring excess funds allocated for trust expenses, which could be donated to non-affiliated entities.
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