The new director compensation system maintains fixed compensation at 300 million yen, changes the KPI for performance-linked compensation to net income attributable to owners of parent, making it variable, abolishes stock option-type equity compensation, and introduces a restricted stock compensation system. 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Total compensation is estimated to decrease approximately 63% compared to the current system.","jir_summary":"### Overview of the New Director Compensation System\nGungHo Online Entertainment, Inc. has formulated a new director compensation system. While maintaining the fixed compensation framework at 300 million yen, individual compensation amounts have been substantially revised based on industry standards and the new management structure. The KPI for performance-linked compensation has been changed from consolidated operating income to net income attributable to owners of parent. The payout rate has been revised from a uniform 0.5% to a variable system ranging from 0% to 1%, increasing stepwise per every 5 billion yen. Stock option-type equity compensation has been abolished, and a performance-linked restricted stock compensation system has been introduced.\n\n### Comparison of Compensation Systems and Impact on Shareholder Interests\nCompared to the current compensation system for fiscal 2024, the total compensation under the new system is estimated to decrease by approximately 63% to about 107.78 million yen. On the other hand, if business performance is strong, and net income attributable to owners of parent reaches 20 billion yen with a growth rate above 100%, compensation increases, strongly incentivizing the enhancement of shareholder value. This structure aims to promote management from the shareholder perspective and strengthen the remuneration system to maximize corporate value.","jir_financial_highlights":"Fixed Compensation Framework: 300 million yen (Maintained)\nKPI for Performance-Linked Compensation: Net Income Attributable to Owners of Parent (Changed from Consolidated Operating Income)\nUpper Limit Framework for Performance-Linked Compensation: 400 million yen (Increased (previous upper limit 300 million yen))\nStock Option-Type Equity Compensation: Abolished (100% reduction)\nEstimated Total Compensation Under New System: 107,736 thousand yen (Approximately 63% decrease (current 288,376 thousand yen))","jir_category":"","jir_hashtags":"#GungHoOnlineEntertainment, #ExecutiveCompensationSystem, #JapaneseStocks","jir_key_figures":"Fixed Compensation Framework: 300 million yen (maintained)\nUpper Limit of Performance-Linked Compensation: 400 million yen (increased from previous 300 million yen)\nEstimated Total Compensation Under New System: Approximately 107.78 million yen (about 63% decrease compared to current)","jir_meta_title":"Overview of GungHo\u2019s New Director Compensation System | Total Compensation Down ~63%, KPI for Performance-Linked Pay Changed","jir_meta_description":"GungHo Online Entertainment announces a new director compensation system. Fixed compensation maintained at 300 million yen, performance-linked pay KPI changed to net income, stock-based equity compensation abolished and replaced with restricted stock awards. Total compensation estimated to decrease approximately 63% from current levels.","jir_og_title":"Announcement of GungHo\u2019s New Director Compensation System Overview","jir_og_description":"Key points of the new system explained including fixed compensation maintenance, KPI change for performance-linked pay, and abolition of stock option-type equity compensation.","jir_og_image_url":"\/assets\/og\/company-executive_change.jpg","jir_chart_data_collection":"[]","ir_related_company":9126,"ir_release_date":"","ir_type":"","ir_is_new":false,"ir_document_url":"","jir_ir_type":"executive_change","footnotes":""},"sector":[],"importance":[],"class_list":["post-16577","ir_release","type-ir_release","status-publish","hentry"],"yoast_head":"\n