Seiko Giken Co., Ltd. Announces Changes to Director Stock Compensation System | May 2026

Overview of the System Changes

Seiko Giken Co., Ltd. plans to propose at the June 2026 shareholders' meeting an amendment to the stock compensation system for directors (excluding outside directors) regarding the content and the upper limit of the amounts. The changes include extending the trust period (from conventional 3 years to within 5 years), increasing the maximum fund contribution during the trust period (from 200 million yen to 2.1 billion yen), and setting an upper limit of 30,000 points per business year. The system involves delivering shares through a trust, and recipients receive shares upon departure. The purpose of the system is to share the risks of stock price increases and decreases and to promote the enhancement of corporate value.

Details of the System and Future Outlook

The new system aims to enhance flexibility in share granting and strengthen incentives through extended trust periods and increased funding limits. At the end of the trust period, shares are to be acquired free of charge and redeemed, while a certain amount of funds will be donated to public interest incorporated associations. The change is intended to encourage stock price appreciation and increase directors' awareness of long-term corporate value improvement.