GungHo Online Entertainment, Inc.
Overview of the New Director Compensation System (Supplementary Explanation Materials)
The new director compensation system maintains fixed compensation at 300 million yen, changes the KPI for performance-linked compensation to net income attributable to owners of parent, making it variable, abolishes stock option-type equity compensation, and introduces a restricted stock compensation system. Total compensation is estimated to decrease approximately 63% compared to the current system.
Key Figures
- Fixed Compensation Framework: 300 million yen (maintained)
- Upper Limit of Performance-Linked Compensation: 400 million yen (increased from previous 300 million yen)
- Estimated Total Compensation Under New System: Approximately 107.78 million yen (about 63% decrease compared to current)
AI要約
Overview of the New Director Compensation System
GungHo Online Entertainment, Inc. has formulated a new director compensation system. While maintaining the fixed compensation framework at 300 million yen, individual compensation amounts have been substantially revised based on industry standards and the new management structure. The KPI for performance-linked compensation has been changed from consolidated operating income to net income attributable to owners of parent. The payout rate has been revised from a uniform 0.5% to a variable system ranging from 0% to 1%, increasing stepwise per every 5 billion yen. Stock option-type equity compensation has been abolished, and a performance-linked restricted stock compensation system has been introduced.
Comparison of Compensation Systems and Impact on Shareholder Interests
Compared to the current compensation system for fiscal 2024, the total compensation under the new system is estimated to decrease by approximately 63% to about 107.78 million yen. On the other hand, if business performance is strong, and net income attributable to owners of parent reaches 20 billion yen with a growth rate above 100%, compensation increases, strongly incentivizing the enhancement of shareholder value. This structure aims to promote management from the shareholder perspective and strengthen the remuneration system to maximize corporate value.
