Subaru – Notice Regarding Revisions to Executive Compensation Plan
* Company Name:
* Representing :
* Code number: 7270 (first section of
* Contact for any request:
* and Managing Director of the Investor Relations Department
* Phone: +81-3-6447-8825
As part of its efforts to revise the executive compensation plan, the Company plans to present a proposal on revisions to the restricted stock compensation plan at the 91st Ordinary General Meeting of Shareholders to be held in
Details of the revisions are provided below.
1. Purpose of revisions to the executive compensation plan
Revisions to the composition of executive compensation are intended to implement the priority initiatives set out in the Corporation’s medium-term management vision, STEP, and to further motivate directors and officers to contribute to the
Revisions to the Restricted Share Compensation Plan are subject to shareholder approval at the General Meeting.
2. Overview of revisions to the executive compensation plan
(1) Composition of compensation
The composition of the compensation of the director representative of the board of directors, president and chief executive officer will amount to 45% in base compensation, 30% in annual performance bonuses and 25% in restricted stock compensation (15% in performance share units [PSU] + 10% limited stock [RS]), when the performance indicators defined in STEP are reached.)
The remuneration of the external directors remains unchanged and consists only of a basic remuneration.
Composition of the compensation of the director representing the board of directors, chairman and chief executive officer
(2) Annual bonuses linked to performance (short-term incentive)
Based on the consolidated pre-tax result of the current financial year as a key performance indicator (KPI), a remuneration table in which the higher his position, the more his remuneration is closely linked to the annual performance will be established. Annual performance bonuses will be paid in cash at a certain time of the year. The specific amount for executive vice presidents, senior vice presidents and vice presidents will be determined taking into account factors such as their contributions to business performance and people development. These bonuses will not be paid to outside directors.
(3) Restricted share compensation (medium and long-term incentive)
The Company introduced restricted stock compensation (type RS) in fiscal year 2017 to incentivize directors and officers to achieve sustained improvement in the value of the Company over the medium to long term and to share further this value with shareholders.
On this occasion, in order to contribute to the achievement of the objectives set in the
Reference: Briefing on the progress of the medium-term management vision “STEP” (