Japan’s K Line wants to increase the cash pot for its directors by 33% and reward them for reducing CO2 emissions in its fleet.
The plans will be discussed at a shareholder meeting in June that would seek to increase the maximum rewards for executives from ¥600m ($4.48m) to ¥800m ($5.99m), the company said.
The plan seeks to shift the emphasis of directors’ pay to securing long-term goals including improvements in CO2 emissions efficiency.
The vast majority of pay for securing long-term goals is based on shareholder returns, with emissions reductions making up 5% of the potential total.
The company said the changes are designed to secure and retain boardroom talent while promoting performance-based pay and sustainability.
Shareholders approved the increase to ¥600m seven years ago. The latest changes have been proposed by an independent remuneration committee of outside directors.
Chief executive Yukikazu Myochin said in January that the company’s financial performance this year was set to be the best ever.
The following month, K Line downgraded its forecast profits to ¥650bn from ¥700bn for the year to the end of March, owing to the decline in its container shipping business and changes to the yen-dollar exchange rate.
Tokyo-listed K Line has a fleet of 421 vessels, including 162 dry bulk carriers and 86 car carriers, according to its website.
