Remuneration of Directors and Auditors

The Company's basic policy is to set the remuneration of directors at an appropriate level based on the responsibilities of each individual director's position. Specifically, remuneration for directors consists of fixed basic remuneration, performance-linked remuneration, and stock-based remuneration, with outside directors paid only basic remuneration in light of their duties.
The basic remuneration is a fixed monthly remuneration based on the responsibilities of the position. Performance-linked remuneration is cash remuneration reflecting performance indicators to raise awareness of the need to improve performance in each fiscal year, and an amount calculated based on the level of consolidated ordinary income for the current fiscal year and its change from the previous year is paid annually as a bonus at a certain time.
In order to provide incentives to improve the medium- and long-term performance of the Company and increase its corporate value, non-monetary compensation is made in the form of stock-based compensation through a stock award trust, whereby points based on position are granted at a certain time each year and Company shares are awarded upon retirement in accordance with the number of points earned during the term of office after the director's term of office ends.
The ratio of basic remuneration to performance-linked remuneration, non-monetary remuneration, etc. is determined as appropriate in accordance with shared interests with shareholders and continuous enhancement of corporate value.
With respect to the amount of individual remuneration, the Board of Directors delegates the determination of the specific details to the Representative Directors based on deliberations of the Nomination and Compensation Committee in accordance with the resolution of the Board of Directors.