【Idemitsu Kosan】Revision of Performance-Linked Stock Compensation System | June 2026

Overview of the System

Idemitsu Kosan has resolved to revise its performance-linked stock compensation system for directors and executive officers, with approval expected at the General Meeting of Shareholders on June 24, 2026. The system involves delivering shares and cash through a trust, with rewards granted based on achievement of titles and performance targets. The revision includes an upper limit on contribution amounts and adjustments to indicators, aligning the system with the company's medium- to long-term vision to promote corporate value enhancement and shareholder value sharing. The trust period will be extended, and additional share acquisitions are planned for August 2026.

Background and Purpose of the Revision

Aligned with the new medium-term management plan (2026–2030), Idemitsu Kosan aims to boost directors’ motivation and achieve sustainable corporate value improvement by linking performance and key indicators. The revision seeks to secure a competitive level of stock-based compensation, promote the holding of treasury shares, and share value with stakeholders. To ensure transparency and objectivity, the revision was deliberated by the Nomination and Compensation Advisory Committee and subsequently approved by the Board of Directors.