Saga Bank Implements Share-Based Compensation System and Abolishes Stock Options｜May 2026

System Overview

Saga Bank has revised its director remuneration system, abolishing the conventional stock-based stock option system and introducing a new share-based compensation system. The new system aims to enhance linkage between share price and management performance, promoting long-term growth. Implementation requires approval at the Shareholders' Meeting in June 2026, utilizing a trust-based structure.

System Details and Operation

The new system grants shares to targeted directors via a trust, and upon resignation, delivers shares or pays cash equivalent based on points accrued. The trust period is approximately two years, with points awarded based on director rank and performance, up to a maximum of 26,000 points (equivalent to up to 26,000 shares). Extensions and additional contributions to the trust are possible, and any remaining shares are either canceled or managed through trust continuation.