Remuneration for Directors consists of fixed monthly remunerations and performance-linked bonuses as short term incentive, and performance-linked stock compensation as mid- and long-term incentive.
The fixed monthly remunerations
The fixed monthly remunerations are determined according to the positions of Directors and the distinction of Inside Director and Outside Director, to the extent of the maximum amount approved at the General Meeting of Shareholders.
The bonuses are calculated by, adding to the standard amount determined for each positions of Directors, evaluation, under certain rules, of the contribution by Director to the business results during previous fiscal year. No bonuses are paid to Outside Directors from the viewpoint of securing their independence from NEC because NEC expects that Outside Directors play a leading role in supervision over business execution.
The stock compensation
The Company shares will be granted after the expiry of period of Mid-term Management Plan in accordance with the Directors' titles and the level of the achievement of Mid-term Management Plan.
No Company shares are granted to Outside Directors from the viewpoint of securing their independence from NEC because NEC expects that Outside Directors play a leading role in supervision over business execution.
As for a certain specific portion of Company shares, NEC will sell the shares on the stock market and pay cash instead of the shares in consideration of tax payment at the time of granting shares.