Notice Regarding the Introduction of a Restricted Stock Unit Plan for Non-Japanese Officers
Notice Regarding the Introduction of a Restricted Stock Unit Plan for Non-Japanese Officers
Tokyo, March 30, 2020--- Hitachi, Ltd. (TSE: 6501, “Hitachi” or the “Company”) resolved at a meeting of the Compensation Committee held today to adopt a restricted stock unit plan (the “Plan”) for Hitachi’s non-Japanese Executive Officers and Corporate Officers (the executive positions next to Executive Officers).
1. Purpose of introduction of the Plan
Hitachi introduced a restricted stock compensation plan for Japanese Executive Officers and Corporate Officers in order to propel management from a medium- and long-term perspective and to provide incentives to bring about a sustainable increase in enterprise value by further promoting senior management’s shared values with shareholders through the holding of shares during their terms of office. To take this initiative further, starting from FY2020, the Company will introduce the Plan for non-Japanese Executive Officers and Corporate Officers (the “Eligible Persons”).
2. Outline of the Plan
Under the Plan, the Eligible Persons will be granted restricted stock units (“RSUs”) corresponding to the number of shares of Hitachi’s common stock (the “Shares to be Delivered”) set in advance for each Eligible Person and, over three fiscal years after granting, one-third of the RSUs will become vested after the end of each fiscal year and the Shares to be Delivered or cash for the vested RSUs will be delivered. The Eligible Persons will receive shares of common stock to be newly issued or disposed by the Company by making contributions in kind of the monetary compensation claims which are granted after the end of each fiscal year in order to allot the Shares to be Delivered to the Eligible Persons. If the Eligible Persons retire due to expiration of their term of office, death or other legitimate reasons recognized by the Company’s Compensation Committee, they will receive the Shares to be Delivered or cash corresponding to the portion of RSUs granted reflecting the period from the granting date until such retirement.
About Hitachi, Ltd.
Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is focusing on Social Innovation Business combining its operational technology, information technology and products. The company’s consolidated revenues for fiscal 2018 (ended March 31, 2019) totaled 9,480.6 billion yen ($85.4 billion), and the company has approximately 296,000 employees worldwide. Hitachi delivers digital solutions utilizing Lumada in five sectors including Mobility, Smart Life, Industry, Energy and IT, to increase our customer’s social, environmental and economic value. For more information on Hitachi, please visit the company’s website at https://www.hitachi.com .
