TOKYO, May 27 (Pulse News Wire) – SMC Corporation (6273.T) announced amendments to its performance-based compensation plan for directors effective June 26, subject to approval at its upcoming annual shareholders' meeting. The revised plan includes cash bonuses, stock awards, and stock options based on operational metrics such as operating profit and revenue growth rates.
Under the new structure, up to ¥5 billion in cash bonuses and up to ¥6 billion in trust funds for stock awards will be allocated annually. Additionally, up to 150 thousand shares of stock options will be granted per year, with adjustments made for mergers or share splits. The amended plan also introduces a three-year vesting period for stock grants, ensuring alignment between director remuneration and shareholder value.
Directors will receive points corresponding to their performance targets, which will be converted into company shares upon retirement or fulfillment of certain conditions. Any excess funds beyond the set limits will be distributed as additional cash bonuses. In cases of misconduct or errors in performance metric calculations, affected directors may lose their entitlements under the plan.
Further details, including precise allocation methods and vesting schedules, will be disclosed post-annual meeting.
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