TOKYO, May 21 (Pulse News Wire) – SWCC Corporation (5805.T) announced today that its board of directors, held, approved the introduction of a performance-based equity compensation system for directors alongside the existing non-performance-linked share award program. The new system aims to enhance long-term corporate value and align director incentives with shareholder returns.
Under the new regime, eligible directors will receive share awards based on predetermined performance metrics, specifically Total Shareholder Return (TSR). The total monetary compensation amount available for this purpose is set at up to ¥250 million per annum, separate from the previous cash remuneration framework. Additionally, the number of ordinary shares issuable under this plan is capped at up to 10,000 annually.
The proposed changes will be put forward for shareholders' approval at the upcoming annual general meeting scheduled for June 25, 2026. Should the proposal pass, the company plans to extend similar performance-linked equity compensation to executive officers who do not concurrently hold director positions. This move reflects SWCC's commitment to fostering greater alignment between management and shareholders while promoting sustainable growth through targeted incentive structures.
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