【Shimizu Corporation】Introduction of Performance-Linked Stock Compensation System | May 2026

Overview of the System

Shimizu Corporation has decided to introduce a performance-linked stock compensation system for executives following a resolution by the Board of Directors in May 2026. This system grants shares to executives through a trust, promoting enhancement of corporate value and performance linkage, targeting the period from August 2026 to August 2027. The purpose of the system is to motivate executives to improve performance and share risks and returns with shareholders. Details include a trust fund amount of 236 million yen, a contribution limit of 600 million yen, and the setting of a trust period. The operation of the system is planned to be carried out after approval by the Board of Directors and deliberation by the Nomination and Compensation Committee.

Impact on Shareholders and Future Outlook

The introduction of this system aims to enhance the performance of executives and increase corporate value over the medium to long term. By delivering company shares, the system shares stock price fluctuation risks with executives and strengthens management incentives. It is scheduled to be formally approved at the shareholders' meeting in June 2026. Going forward, stock grants will be based on the operational status and performance achievements of executives. Depending on the effects of the system, it is expected to contribute to sustainable corporate growth and increased shareholder value.