Yakult Honsha Co.,Ltd.
Notice Regarding Revision of Stock Compensation System
Revision of directors’ compensation structure ratio to fixed compensation 60%, short-term incentives 15%, and long-term incentives 25%, with the establishment of a performance-linked stock compensation system. Approval expected at the June 2026 shareholders meeting.
Key Figures
- Fixed Compensation Ratio: 60% (decreased from current 70%)
- Short-term Incentive Compensation Ratio: 15% (unchanged from current)
- Long-term Incentive Compensation Ratio: 25% (increased from current 15%)
AI要約
Purpose and Overview of the Revision of the Stock Compensation System
Yakult Honsha Co., Ltd. resolved to revise the stock compensation system to enhance the alignment between directors’ compensation and the medium- to long-term corporate and stock value by introducing a performance-linked stock compensation system in addition to the existing non-performance-linked system. The compensation structure ratio will change from fixed compensation 70%, short-term incentives 15%, and long-term incentives 15% to fixed compensation 60%, short-term incentives 15%, and long-term incentives 25%, raising the proportion of stock compensation. Performance-linked compensation metrics will include ROE, relative TSR, and employee engagement scores.
Mechanism of the New System and Future Plans
The new stock compensation system will utilize a stock benefit trust (BBT-RS), where the trust acquires shares with funds contributed by the company and provides shares or cash to the eligible directors. Stock grants will generally be made once annually at a fixed timing, with transfer restrictions imposed until retirement through transfer restriction agreements. Approval at the 74th Annual General Meeting of Shareholders scheduled for June 2026 is a prerequisite for this system.
