Mitsubishi Estate Co., Ltd.
Notice Regarding Revision of Executive Compensation System
Mitsubishi Estate Co., Ltd. will revise its executive compensation system from fiscal 2026, introducing a post-performance grant type performance-linked stock compensation plan, adopting ESG indicators, and increasing the variable compensation ratio of the president's pay to 70%.
Key Figures
- Variable Compensation Ratio of President's Pay: 70% (up from current 60%)
- PSU Compensation Evaluation Period: 3 years
- PSU Compensation Evaluation Metrics: ROE, EPS, Relative TSR, ESG Evaluation, Stock Price Volatility
AI要約
Background and Purpose of Revising the Executive Compensation System
Since fiscal 2022, Mitsubishi Estate Co., Ltd. has operated a system that increases the ratio of stock price-linked and performance-linked compensation for executives to promote sustainable enhancement of corporate value. From fiscal 2026, based on the progress of the long-term management plan 2030, the system will be revised to strengthen the linkage between executive compensation and the long-term management plan, with the aim of reinforcing executives' commitment to shareholder value enhancement strategy and social value enhancement strategy.
Main Changes in the Executive Compensation System and Overview of Variable Compensation
The main changes are: (1) introduction of a post-performance grant type performance-linked stock compensation plan (PSU compensation) and adoption of ESG indicators, and (2) increasing the variable compensation ratio of the president's pay to 70%. The PSU compensation will have a 3-year performance evaluation period, with evaluation items including ROE, EPS, relative TSR, ESG evaluation, and stock price volatility. After the evaluation period, half of the determined compensation receivable amount will be paid in shares and half in cash. Restricted stock compensation will continue as the fixed part.
