Policy

The Sanrio Board of Directors has established the following policies for determining the details of remuneration for individual directors.

1. Basic Policy
   The Company’s basic policy is to maintain a remuneration structure that is linked to shareholder interests so that it functions as a sufficient incentive to sustainably improve corporate value, and to set the remuneration of individual directors at an appropriate level based on their individual job responsibilities. Specifically, executive director remuneration shall consist of basic remuneration as fixed remuneration, special bonuses, and stock-based remuneration, and outside directors with supervisory functions shall receive only basic remuneration in light of their duties.
2. Policy for Determining the Amount of Individual Basic Remuneration
   The basic remuneration of Company directors shall be a fixed monthly remuneration and determined in accordance with the position, responsibilities, and length of service along with an overall consideration of the standards of other companies, the Company's performance, and the level of employee salaries.
3. Policy for Determining the Content and Calculating the Amount or Number of Non-monetary Remuneration
   Non-monetary remuneration shall be granted in restricted stock, and the number of restricted shares provided as part of remuneration shall be determined according to the position.
4. Matters Concerning the Determination of the Details of Individual Remuneration for Directors
   The President and CEO shall discuss the remuneration amount for each individual director with the officer responsible for the Human Resources Division, etc., based on the decision policy resolved by the Board of Directors. The determination authority under that policy shall be the amount of basic remuneration for each director and the allocation of bonuses based on the performance of the business for which each director is in charge. To ensure that authority is properly exercised by the President and CEO, the Nomination and Remuneration Advisory Committee shall be consulted for its report, and the President and CEO, who has been delegated the above authority, shall make decisions in accordance with the content of such report. With regard to stock-based remuneration, the Board of Directors shall determine the number of shares to be allocated to individual directors based on the report of the Nomination and Remuneration Advisory Committee.
   Remuneration for directors serving as Audit and Supervisory Committee members shall consist of fixed remuneration only, and the amount of individual remuneration shall be determined after discussion at a meeting of the Audit and Supervisory Committee.

Remuneration limits

Sanrio transitioned to a company with an Audit and Supervisory Committee by resolution of the 65th Ordinary General Meeting of Shareholders held on June 26, 2025, and new maximum amounts of monetary remuneration were approved by resolution. The maximum amount for the Company’s directors (excluding Audit and Supervisory Committee members) was resolved to be 600 million yen per year, including 50 million yen for outside directors, and 40 million yen for directors who serve as Audit and Supervisory Committee members. For directors (excluding Audit and Supervisory Committee members and outside directors), the total amount of remuneration in the form of monetary claims for restricted stock, separate from the above monetary remuneration, was approved at no more than 200 million yen per year.
There are seven directors (excluding Audit and Supervisory Committee members) in total (including three outside directors) and three directors who serve as Audit and Supervisory Committee members (including two outside directors).
Remuneration for directors for the fiscal year under review consists of fixed remuneration, restricted stock compensation, and special bonuses. In accordance with the policy resolved by the Board of Directors, the amount of remuneration for each individual director shall be discussed by the President and CEO with the officer responsible for the Human Resources Division, etc. The content subject to this authority is the amount of base remuneration for each director and the evaluation and allocation of bonuses based on the performance of the business for which each director is responsible. The President and CEO is authorized to determine the remuneration based on the understanding that he is in a suitable position to evaluate the performance of each director's department while taking into account the overall performance of Sanrio. The Board of Directors determines the amount of remuneration for each individual director through procedures based on the above policy, and has determined that the content of the remuneration is in line with the determination policy.

Officer remuneration

Total remuneration amounts and number of individuals for each officer category (FY3/2025)

Note: The auditors (excluding the outside auditors) presented above include one full-time director who retired at the end of their term of office as of the close of the 63rd Ordinary General Meeting of Shareholders.

Annual remuneration of officers (Officers receiving JPY 100 million or more in total remuneration, FY3/2025)