TOKYO, May 29 (Pulse News Wire) – Sanrio Company,ltd. (8136.T) announced that its board of directors held on May 29 decided to introduce a performance-based equity compensation plan for executives, excluding audit committee members and outside directors.
The plan will replace the existing restricted stock award program and will be implemented pending approval at the 66th Annual General Meeting scheduled for June 25. Under the new plan, executive compensation will consist of base salary, bonuses, and performance-linked equity awards. The company will establish a trust fund to allocate funds based on the executives' positions and performance targets. Shares acquired through the trust will be distributed to eligible executives upon their retirement, subject to certain conditions. The initial three-year term of the trust will run from August 2026 to August 2029, with potential extensions contingent on additional shareholder approvals.
Each point awarded to executives will correspond to one ordinary share of Sanrio, with a cap set at 894,000 points per three-year cycle. The total number of shares deliverable under the plan is capped at 894,000. Votes on shares held within the trust will not be exercised during the trust period to ensure neutrality in management decisions. Any dividends received by the trust will cover administrative fees and expenses. Upon expiration of the trust, remaining shares and dividend proceeds will either continue to be utilized or transferred back to the company for disposal.
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