【Suruga Bank】 Continuation of Executive Compensation System Based on Mid-term Management Plan | May 2026

Overview of the System

Suruga Bank has approved the continuation of its trust-based stock reward system for directors at the Board of Directors meeting, and following approval at the shareholders' meeting in May 2025, it will be operated from FY2026 onward. The system is an incentive plan inspired by performance-linked models from Europe and the U.S., with metrics such as ROE linked to performance. During the trust period, shares will be acquired from the market, and upon retirement, shares or other assets will be distributed according to points accumulated. To ensure transparency, the system is operated following deliberation by an appointed committee.

Future Operations and Corporate Strategy

The continuation of the system aims to enhance directors' awareness of improving corporate value over the medium to long term. Using the additional trust fund contribution of 629 million yen, the bank will acquire shares and continue to operate the system. Changes in the system's structure include linking it to earnings indicators such as ROE, with the goal of improving profitability and maximizing shareholder value. During the trust period, voting rights will not be exercised, and plans are in place for the handling of residual shares and assets.