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GungHo Online Entertainment Plans Overhaul of Director Pay, Adding Performance-Linked Stock Awards

Story Highlights
  • GungHo plans to overhaul executive pay, revising base salaries and performance-linked cash bonuses.
  • The company will replace stock options with performance-linked restricted shares to align directors with shareholders.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
GungHo Online Entertainment Plans Overhaul of Director Pay, Adding Performance-Linked Stock Awards

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The latest announcement is out from Gungho Online Entertainment ( (JP:3765) ).

GungHo Online Entertainment’s Nomination and Remuneration Committee, dominated by independent outside directors, has recommended significant revisions to the remuneration system for executive directors, aiming to better link pay with business performance and long-term corporate value. The proposed changes include a substantial review of basic monetary remuneration levels in line with a newly announced management structure and industry benchmarks, a shift in the key performance indicator for performance-linked cash bonuses from consolidated operating profit to profit attributable to owners of the parent, and setting a maximum annual performance-linked cash pool of ¥400 million, with tighter downside when performance is weak and higher potential payouts when results are strong. In addition, the committee has advised abolishing the current stock option-based remuneration and introducing a performance-linked stock-based plan that grants restricted shares based on performance and shareholder value growth over a defined evaluation period, in order to heighten management’s focus on share price and alignment with shareholder interests, while outside and part-time directors will continue to receive only basic remuneration. These revisions will be deliberated by the Board and key elements will be put to a shareholder vote at the March 2026 ordinary general meeting.

The most recent analyst rating on (JP:3765) stock is a Hold with a Yen2641.00 price target. To see the full list of analyst forecasts on Gungho Online Entertainment stock, see the JP:3765 Stock Forecast page.

More about Gungho Online Entertainment

GungHo Online Entertainment, Inc. is a Japanese video game developer and publisher best known for its online and mobile game titles, focusing on sustaining and expanding its game development business and enhancing long-term corporate value in the competitive digital entertainment industry.

Average Trading Volume: 187,574

Technical Sentiment Signal: Hold

Current Market Cap: Yen137.6B

For an in-depth examination of 3765 stock, go to TipRanks’ Overview page.

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