Establishment of New Executive Compensation System and Revision of Executive Compensation Policy

Overview of New Executive Compensation System

Seven & i Holdings Co., Ltd. formulated a new executive compensation system at the Board of Directors meeting held on April 16, 2026, and plans to propose a resolution to revise remuneration amounts and introduce a new stock compensation system at the 21st Annual General Meeting of Shareholders on May 27, 2026. The new system is fundamentally performance-linked (pay-for-performance) and consists of fixed remuneration, performance-linked bonuses, performance condition-type stock compensation (PSU), and service condition-type stock compensation (RSU). The performance evaluation period is three fiscal years, emphasizing mid- to long-term corporate value enhancement. RSUs will also be granted to outside directors to promote value sharing with shareholders.

Revision of Remuneration Limits and Extension of Trust Period

The monetary remuneration limit for directors will be increased from JPY 2.0 billion to JPY 2.5 billion per year, while the limit for outside directors remains at JPY 0.5 billion. The maximum number of shares for post-delivery stock compensation is set at 4,500,000 shares annually for directors (PSU 4,000,000 shares, RSU 500,000 shares) and 45,000 shares (RSU) for outside directors. The trust period is scheduled to be extended for three years from August 1, 2026, to the end of July 2029, utilizing a BIP trust to implement stock compensation. The remuneration committee ensures transparency while designing compensation at a global standard level, enhancing incentives toward improving corporate value.