AR2017

47/90

2.Policy Regarding Decisions on Amounts of Director Remuneration(1)Director remuneration (excluding Audit & Supervisory Committee members)Remuneration of directors (excluding Audit & Supervisory Committee members) consists of the following.Basic remuneration• Fixed amount determined based on rank as well as contributions to the director shareholding association• Long-term incentives provided by enabling directors to periodically purchase and hold shares of Company stock through the director shareholding association based on contributions madeBonuses• The Company has established short-term incentives (remuneration linked to business performance) paid in amounts adjusted based on consolidated business results. However, the total amount paid does not exceed ¥150 million.Stock options• Long-term incentives provided together with the director shareholding associationThe amounts of remuneration are decided by the Board of Directors in accordance with the Company’s internal rules on director remuneration and based on the duties and responsibilities of each director (excluding Audit & Supervisory Committee members), within totals approved at the General Meeting of Shareholders.The remuneration assessment advisory meeting has been estab-lished as an advisory body for the president and CEO on matters regarding the assessment of and decisions on remuneration for directors (excluding Audit & Supervisory Committee members) with the aim of improving objectivity and transparency.This body, which has members including external specialists, provides advice and makes suggestions to the president and CEO when necessary.(2)Director (Audit & Supervisory Committee member) remuneration Audit & Supervisory Committee member remuneration is dis-cussed and decided by the Audit & Supervisory Committee in accordance with the Company’s internal rules on director remu-neration and based on each member’s duties and responsibilities, within totals approved at the General Meeting of Shareholders.Policy on Holdings of Capital Tie-Up SharesThe Company views the establishment and maintenance of stable, long-term relationships with business partners as a matter of impor-tance. For this reason, shares of stock are held to form capital tie-ups when deemed appropriate based on a comprehensive evaluation of factors such as the Company’s business relationship with the part-ner in question. We only acquire such holdings when increasing trust and coordination with the business partner through holdings is judged as an effective means of mutually raising corporate value, and these holdings are reviewed based on this perspective when neces-sary. In exercising voting rights, the Company respects the manage-ment policies of the investee and votes for or against proposals based on a careful examination of whether or not the proposal will contrib-ute to improved corporate value and shareholder returns.StockholdingsStocks held for purposes other than pure investmentNumber of issues: 56 issuesTotal amounts recorded on balance sheet: ¥2,544 millionFiscal Year under Review Specic Investment SharesTop 10 issuesNumber of shares (Thousands)Amounts recorded on balance sheet (Millions of yen)Purpose of holdingToray Industries, Inc.1,1601,144To strengthen business relationshipsAMANO Corporation224499Same as aboveFujipream Corporation936286Same as aboveMitsubishi UFJ Financial Group, Inc.159111Same as aboveKING JIM CO., LTD.7666Same as aboveSoken Chemical & Engineering Co., Ltd.3555Same as aboveIMURA ENVELOPE CO., INC.10048Same as aboveMizuho Financial Group, Inc.20642Same as aboveOZU CORPORATION1534Same as aboveASAHI PRINTING CO., LTD.1232Same as above45LINTEC ANNUAL REPORT 2017