Remuneration for the Company's Directors currently comprises basic remuneration and performance-linked remuneration reflecting consolidated financial results and individual performance.

By more clearly linking remuneration of Directors (excluding Outside Directors, the same applying hereinafter) and the Company's shareholder value, the System is designed to enhance the motivation of Directors to contribute to greater business performance and corporate value of the Company over the medium-to-long term. The system would reinforce the common interest between Directors and shareholders, including both the benefits of share price increases and the risk associated with share price decreases.

Remuneration of Directors is currently limited to ¥650 million or less (of which, ¥50 million or less is for Outside Directors), excluding remuneration for duties performed in the capacity of employee in the case of persons serving as both Director and employee, as approved at the 123rd Ordinary General Meeting of Shareholders on June 27, 2014. The System for stock-based remuneration would operate separately from and in addition to the above, for the Company's Directors who hold office during the 3-year period ('Applicable Period') from the fiscal year ending March 2018 to the fiscal year ending March 2020.

If introduction of the System is approved at the Shareholders Meeting, a similar stock-based incentive system is planned for Executive Officers of the Company and for Executive Officers of core operating companies of the Asahi Kasei Group who hold a certain rank.

The System was deliberated at the Company's Remuneration Advisory Committee, consisting of a majority of Outside Directors, which is established to ensure objectivity and transparency in determining Directors' remuneration, etc.

Asahi Kasei Corporation published this content on 11 May 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 11 May 2017 04:36:10 UTC.

Original documenthttp://www.asahi-kasei.co.jp/asahi/en/news/2017/e170511_1.html

Public permalinkhttp://www.publicnow.com/view/1B5E5E66E14944286D1010215D6D5F29CB7FF86F