TOKYO, May 20 (Pulse News Wire) – Tokuyama Corporation (4043.T) announced today that its board of directors approved the continuation and partial amendment of its equity-based compensation program for executives. The revised program will be submitted for shareholder approval at the company's 162nd Annual General Meeting scheduled for June 26, 2026.
Under the amended plan, which targets fiscal years aligned with the medium-term management strategy, executives will receive shares or cash equivalents based on their performance metrics. The trust mechanism, known as the Board Incentive Plan (BIP) Trust, ensures alignment with company performance and maintains transparency and objectivity. The trust period will extend from September 3, 2018, to August 31, 2031, subject to shareholder approval. Key changes include adjustments to the calculation formula for points awarded to executives, based on performance indicators such as consolidated operating profit margin and return on equity (ROE).
The total cap for contributions to the trust remains at ¥2 billion 999 million yen, while the upper limit for share distributions stands at ¥9 million 999 thousand shares. Shares acquired through the trust will be sourced from the stock market within the stipulated limits. Executives will receive shares or cash payouts corresponding to accumulated points upon completion of the target period, typically around July following the final fiscal year-end. Any remaining shares or dividend income in the trust will either be utilized for future acquisitions or donated to non-related entities upon termination of the trust.
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