Mitsui O.S.K. Lines revamps executive pay with higher equity ratio

Mitsui O.S.K. Lines (TSE:9104) announced revisions to its compensation system for directors and executive officers, effective fiscal 2025. The key changes, pending shareholder approval at the June 2025 annual meeting, include an increase in overall compensation levels, a higher proportion of equity-based compensation, and the introduction of clawback provisions. For the President, total compensation will target over JPY 200 million when consolidated profit before tax reaches JPY 200 billion. The equity compensation ratio will rise to 35%, with a target of 65% for cash. Furthermore, executives may receive up to 625,000 shares annually through a new performance-based equity compensation plan, and up to 250,000 shares through new role-based plan. The changes aim to align executives’ interests with shareholders, encourage entrepreneurial thinking, and strengthen governance.