Revision to the Remuneration Policy for Officers and Expansion of the Incentive Component (Stock-based Compensation)

TOKYO, Aug 8, 2023: Azbil Corporation (Head Office: 2-7-3 Marunouchi, Chiyoda-ku, Tokyo; President & CEO: Kiyohiro Yamamoto) has announced that it has revised its remuneration policy in line with the revised officers’ remuneration system decided by the Remuneration Committee.

The Company hereby discloses its revised remuneration policy, which accords with the method for determining the remuneration of Company officers (corporate executives and directors) decided by the Remuneration Committee, which is chaired by an independent outside director and the majority of which is composed of independent outside directors. In order to further motivate corporate executives to achieve medium- and long-term performance targets and enhance the enterprise value of the Company, the Remuneration Committee conducted a review of their remuneration structure and decided to increase the performance-linked component by expanding stock-based compensation. The revised remuneration policy is as follows.

Revisions to the Officers’ Remuneration Policy (where underlined)

■Remuneration structure
The remuneration structure for our corporate executives (including corporate executives who concurrently serve as directors, similarly hereinafter) comprises basic remuneration, which is a fixed remuneration paid monthly based on their roles and responsibilities; bonuses as short-term incentives; and stock-based compensation as a medium- to long-term incentive. In order to ensure a remuneration structure that motivates officers to achieve our medium- and long-term performance targets and enhance enterprise value, the incentive component of their remuneration has been increased, and the combined remuneration for corporate executives is expected to break down as follows: basic remuneration 50%, bonus (base amount) 30%, stock-based compensation (base amount) 20%. The remuneration for directors (not including directors who concurrently serve as corporate executives, similarly hereinafter) comprises basic remuneration and stock-based compensation.

The remuneration policy is available in full online:

Guided by the azbil Group’s corporate philosophy of “human-centered automation,” we will always strive to achieve sustainable growth and greater enterprise value while responding to the changing times.

* Posted information is accurate as of the date of announcement.