Mitsubishi Corporation to adopt stock-based director pay

Published 02/05/2025, 09:36
Mitsubishi Corporation to adopt stock-based director pay

TOKYO - Mitsubishi Corporation has announced plans to revise its compensation structure for certain members of its leadership team, introducing a stock-based remuneration system tied to the company’s share performance. This new incentive plan, which was approved at a Board of Directors meeting held today, is designed to align the interests of the company’s directors and executive officers with those of its shareholders, with a focus on enhancing long-term corporate value.

The proposed changes will affect Directors who are not part of the Audit & Supervisory Committee and are actively involved in business execution, as well as Executive Officers. The plan, referred to as the "Plan," will be presented for shareholder approval during the Ordinary General Meeting scheduled for June 20, 2025.

Under the Plan, remuneration for eligible Directors and Executive Officers will be partially based on the performance of Mitsubishi Corporation’s shares, with the intention of promoting a shared sense of value between the company’s management and its shareholders. This move is part of a broader trend seen across various corporations, aiming to incentivize leadership to prioritize sustainable, long-term growth over short-term gains.

The specifics of the stock-based remuneration Plan, including the amount of compensation to be allocated to Directors, will be detailed in a proposal at the upcoming shareholders’ meeting. The announcement indicates Mitsubishi Corporation’s commitment to corporate governance practices that are aligned with shareholder interests.

This information is based on a press release statement issued by Mitsubishi Corporation and disseminated by RNS, the news service of the London Stock Exchange (LON:LSEG). The introduction of the Plan is subject to shareholder approval, and the company will disclose further details in the lead-up to the June meeting. The move reflects a growing emphasis on performance-linked compensation structures as a means to foster greater accountability and performance orientation among corporate executives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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