【Toho Bank】 Revision of Performance-Linked Compensation | May 15, 2026

Details of the Revision of Performance-Linked Compensation

On May 15, 2026, Toho Bank's Board of Directors revised the criteria for performance-linked compensation. The new evaluation indicator shifts from the previous consolidated net income level to consolidated ROE, and the maximum payout months are increased from 3.0 months to 5.0 months. This aims to strengthen incentives for capital efficiency and corporate value enhancement, aligning compensation with earnings environment. The changes will take effect from April 1, 2026, in the 124th term.

Future Outlook and Impact on Shareholders

This revision emphasizes ROE to promote improved capital efficiency and maximization of corporate value. Increasing the maximum payout months is expected to motivate officers for long-term performance improvement. Consequently, shareholders can anticipate enhancements in the company’s profitability and capital efficiency, leading to potential long-term increases in shareholder value.