Officers Remuneration Relationship

The Compensation Committee held on June 29, 2021 resolved a Basic Policy on Officer Remuneration.

Basic Policy on Officer Remuneration

As a Company with a Nominating Committee, etc., a Compensation Committee has been established as stipulated in the Companies Act, and it selects a chairperson from outside directors, secures objectivity and transparency, and determines remuneration of individual officers (directors and corporate executive officers).

(1) Role of Officers and Officer Remuneration

The role assigned to officers is to seek to enhance short-term, medium- and long-term corporate value, and officer remuneration shall serve as an effective incentive for them to perform that role.

(2) Level of Officer Remuneration

The level of officer remuneration shall be suitable for the role, responsibility and performance of the officer, and be in consideration of changes in the business environment, and the level of other companies according to the research of an external specialized institution.

(3) Composition of Annual Remuneration

Remuneration of officers shall comprise fixed remuneration (basic remuneration) and incentive remuneration (bonus, share-based compensation).

Basic remuneration
A fixed amount in accordance with the post of each individual is paid as monthly remuneration.
Bonuses
As a short-term incentive remuneration, a bonus is paid once a year and its amount reflects the evaluation of individual performance against financial and nonfinancial indicators beside the basic amount set by each rank. Indicators are reviewed and selected each year.
Share-based compensation
As a medium- to long-term incentive remuneration, points are provided based on the base amount set by each rank. The stocks are provided based on the number of points at retirement.

Remuneration for directors is comprised of basic remuneration and share-based compensation, while remuneration for corporate executive officers (including those who concurrently serve as directors) is comprised of basic remuneration, bonuses, and stock compensation.
The approximate ratios of each type of remuneration for directors are 90% in basic remuneration and 10% in share-based compensation. The approximate ratios for corporate executive officers (including those who concurrently serve as directors) are 65-70% in basic remuneration, 15-20% in bonuses, and 10-20% in share-based compensation.