Remuneration for officers

KIP of Directors' remuneration and short/long-term ratio of remuneration

The Company determines the remuneration of each officer in accordance with the Policy for Decisions on Directors' and Executive Officers' Remuneration stipulated in the Basic Policy for Musashi Corporate Governance, and the Policy for Decisions on the Details of Individual Remunerations, etc. of Directors resolved by the Board of Directors.
The remuneration consists of basic salary which is fixed compensation for the execution of duties that is paid every month, performance-linked bonuses that are linked to business performance for the fiscal year, and restricted stock compensation that is aimed at sharing profits with shareholders and paid as an incentive for improving the Company's medium- to long-term corporate value.
The remuneration of outside directors consists of the basic salary and restricted stock compensation, reflecting their roles and independence. The remuneration of directors serving concurrently as Audit and Supervisory members includes only a basic salary, reflecting their roles.
Decisions regarding remuneration are deliberated by the Remuneration Committee, which consists mainly of outside directors, before resolution by the Board of Directors, to increase the transparency and objectiveness of decisions regarding remuneration

Policy for Decisions Regarding the Details of the Individual Remuneration, etc. of Directors

Under the Policy for Decisions Regarding the Details of the Individual Remuneration, etc. of Directors, performance-linked remuneration is closely linked to the degree of achievement of target values for each fiscal year and initiatives for improving medium- to long-term corporate value.

1. The basic policy on the remuneration of the Company's directors (excluding those serving concurrently as Audit and Supervisory Committee members; the same applies hereinafter) is to link the remuneration system to shareholder profit so that it is able to fully function as an incentive to improve corporate value sustainably, and to appropriately set the remuneration of the individual directors in light of the duties of each director.
2. The basic remuneration of the Company's directors is monthly fixed compensation, and the amount of remuneration for the individual directors is determined in accordance with the position and responsibilities of each director while comprehensively considering of the remuneration provided by other companies and other factors.
3. Performance-linked remuneration is paid at a certain time every year as a cash bonus the amount of which is calculated based on the degree of achievement of the Company's annual performance targets and strategic indicators based on a medium- to long-term perspective.

1. The ratio of each type of director's remuneration is considered by the Remuneration Committee based on the level of remuneration using the benchmark of other companies with the same scale of business as the Company or companies which belong to relevant industries or business categories while the composition of remuneration determined under this policy is regarded as the basic level, so that the remuneration system will function as an appropriate incentive.

1. Regarding the remuneration of individual directors, the Remuneration Committee evaluates the appropriateness of the executive directors' execution of their duties, such as by comparing the Company's business performance with other companies, while considering the Company's business environment. Based on the results of the evaluation, decisions on the specific amounts of remuneration for individual directors are left to the representative director and president