FAN Communications (TYO:2461) plans to introduce performance-linked and time-vesting restricted stock compensation for directors as part of a broader overhaul of executive pay, according to a Monday filing on the Tokyo Stock Exchange.

The company will seek shareholder approval at its March 25 annual meeting to adopt the two plans and to lower the annual cap on stock options to 50 million yen. The new schemes are designed to tie director compensation more closely to company performance and share value.

Under the performance-based plan, up to 80,000 shares, valued at as much as 40 million yen over two years, may be granted depending on whether operating income reaches 3 billion yen in fiscal 2027.

A separate time-vesting plan allows for up to 20,000 shares, valued at 10 million yen over three years, subject to continued service.