TOKYO PRINTING INK MFG.CO.,LTD. [4635.T]
TOKYO, May 13 (Pulse News Wire) – Tokyo Printing INK Mfg.co.,ltd. (4635.T) announced today that its board of directors has decided to introduce a performance-linked equity compensation system (RS trust) for executives, excluding external directors.
The company plans to propose the implementation of this system at its upcoming annual shareholders' meeting scheduled for June 25, 2026. Under the new RS trust program, executives will receive stock-based compensation linked to the company's performance and share value. The aim is to enhance long-term performance and increase enterprise value by aligning executive remuneration with shareholder interests. Additionally, restrictions on transferring shares received through the RS trust will remain until the executive leaves their position, ensuring sustained corporate growth post-delivery.
The total amount allocated for the RS trust will be up to ¥2.9 billion within the designated period, separate from the previously approved annual compensation limit of ¥250 million per director. The RS trust will operate from August 2026 to August 2031, subject to potential extension based on future performance metrics. Executives will receive points consisting of base points and performance-linked points. Base points will be granted annually during the initial five-year period, while performance-linked points will depend on key indicators such as operating profit, return on equity, and price-to-book ratio, ranging from 0.5 to 1.5 times the base point value.
Each point corresponds to one ordinary share of the company.
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