Guidelines on Executive Compensation(2013)

April 12, 2013

The Dialogue with investors Committee revised "Guidelines on Executive Compensation" for the purpose of reinforcement of the corporate governance. These guidelines suggest emphasizing pay for performance. The management need to be monitored to achieve high performance.

At the same time, Committee promote regulations(ie. Company law) and taxation revision to enable to do better disclosure to investors and introduce a strategic management remuneration plan.

The three key points of guidelines are follows;
1) Enhancing short- and long-term incentive compensation to increase, at an early stage, the currently low proportion of performance-linked compensation as compared to other countries.
2) Strengthening disclosure of compensation details.
3) Requesting revisions of laws/regulations and tax systems to unban restricted stocks