Director Compensation System

Interview with an Outside Director Outline of Corporate Governance Governance Committee Director Compensation System Management Replacement Cycle Appointment Guideline for Outside Directors Business Risk Compliance

Director Compensation System

The basic compensation of the directors, Audit and Supervisory Board members, and other executives of the Daito Group takes into consideration such matters as company performance, the compensation of executives in other companies in the industry, employee pay raises, and years worked, as well as the executives’ management skills, successes, and level of contribution to the Company. A lump-sum payment for the bonuses of all executives is calculated based on a fixed rate—which is decided at the Board of Directors meeting—and paid out of the Company’s consolidated profit attributable to owners of the parent for the current fiscal year. How much each executive receives in bonuses takes into consideration factors like an executive’s level of contribution to the Company. (Note: This does not apply to outside directors.) In addition, the Company introduced a Stock compensation (medium - to long - term result linked compensation) from 2019. (Note: This does not apply to outside directors.)

Director Compensation System