After a 50% Swings, Fujikura Locks Executive Pay to Share Performance
23.05.2026 - 01:12:25 | boerse-global.de
The Japanese fiber-optic cable manufacturer has just lived through one of its most turbulent weeks on record. A stock that traded at „7,933 on 14 May collapsed to „4,156 by 20 May â a near-50% rout in five sessions â before staging a sharp rebound on Friday to close at „4,850, up 7.75%. Against that backdrop, the company announced a sweeping overhaul of its compensation structure, tying management and employee rewards directly to the share price. The message is clear: Fujikura wants the market to see that its leadershipâs fortunes are now aligned with those of its shareholders.
The selling was triggered by Fujikuraâs three-year business plan, unveiled on 19 May. For the fiscal year ending March 2029 (FY2028), the company set an operating profit target of „315 billion. That left analysts cold: the consensus had been „455 billion. The same document forecast operating profit of „211 billion for the current fiscal year (ending March 2027) â a nearly 12% year-on-year increase â and net profit of „156 billion. Yet even those numbers, coming on top of a stellar FY2026 in which revenue jumped 20.7% to „1.182 trillion and operating profit surged 39.2% to „188.7 billion, failed to satisfy expectations. The market had been pricing in a far steeper AI-driven fibre demand trajectory.
As the shares careened lower, Fujikura moved to shore up governance. On 20 May it announced a package of measures centred on performance-linked pay. A restricted-stock plan for certain directors will be capped at „500 million and 212,000 shares annually, subject to shareholder approval at the June 2026 annual meeting. The existing director compensation scheme will be phased out if the new one is approved. Meanwhile, the board authorised the sale of 385,900 treasury shares â valued at roughly „1.81 billion based on the 19 May closing price of „4,695 â to fund an ongoing equity programme for senior executives. The transaction, handled by Sumitomo Mitsui Trust Bank, implies a dilution of just 0.02%. Employees are also being brought into the fold through a separate restricted-stock programme, administered via Nomura Securities, that will grant them restricted shares plus a financial allowance.
Should investors sell immediately? Or is it worth buying Fujikura?
The compensation revamp is part of a wider governance refresh. Fujikura has also proposed switching its long-time auditor from PwC Japan to Deloitte, a change that will be put to a vote at the same June meeting. Capital expenditure plans in Japan and the US have been updated, and the board has revised director compensation rules.
Despite the savage sell-off, analysts have not turned bearish. Two rate the stock a buy, none recommend selling. Their average price target stands at „6,950, with a range of „6,800 to „7,100 â a far cry from the current level around „4,850. Fridayâs rally, fuelled by a 2.68% surge in the Nikkei to a fresh seven-day high of 63,339 and renewed appetite for AI and semiconductor stocks, saw trading volume spike to over 105 million shares. Yet the intraday range â from „4,558 to „5,031 â reflected the deep uncertainty that still grips the stock.
Whether Fujikuraâs governance overhaul can rebuild credibility hinges on one question: will the market give more weight to the long-term promise of AI-driven fibre demand or to the disappointment of a medium-term target that fell far short of hopes? Both narratives are now embedded in the price. The weeks ahead will show which one wins out.
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