[Industry High Standard] Achieving 100% Payout Rate in 10 Years of Service, Launching the 'Seniority-Based Payout System' to Support Long-Term Career Development for Engineers

Engineer Capital Inc. (Headquarters: Setagaya-ku, Tokyo; Representative Director: Kota Horie) has newly introduced the 'Seniority-Based Payout System,' where the payout rate of project unit prices increases according to years of service, aiming to improve long-term engagement for engineers and establish a highly transparent compensation structure. This system adopts a mechanism where the payout rate starts at 83% upon joining the company, increases to 86% in the fourth year, and reaches '100%' in the tenth year. In response to the recent rise in freelance aspirations, we propose a new way of working that balances the stability of regular employment with a higher payout than freelancing.

Background of the New System Introduction Currently, in the IT industry, engineers are increasingly pursuing career autonomy and transitioning to freelance work seeking higher compensation and transparency. On the other hand, there are many voices lamenting the 'unique benefits of regular employment,' such as welfare benefits, training systems, and team development experience. In response to this challenge, our company, based on the philosophy that 'engineers who stay long and grow with the company are our greatest asset,' has decided to introduce this system that fairly evaluates tenure and maximizes the return of profits to individuals.

Comment from Representative Director Kota Horie The strong desire behind our introduction of this 'Seniority-Based Payout System' is to resolve the 'career and compensation dilemma' that Japanese engineers face. Currently, many engineers are transitioning to freelance work seeking a platform where their market value is fairly assessed. However, working independently also entails risks such as the loss of educational opportunities and the lack of a safety net. I am convinced that achieving 'high payouts' exceeding those of freelancers, while maintaining the 'stability' and 'excitement of team development' that a corporate organization can provide, is the true ideal state for engineers. The reason we have set the target of '100% payout rate' in the tenth year of service is not merely to increase compensation. It is the result of our desire to show the utmost respect to engineers who have walked with us for 10 long years and supported our company's culture, and to reward their contributions even at the expense of operating profit. Through this system, we will provide an environment where engineers, from junior to veteran, can focus 100% on honing their skills without worrying about the future. We promise to continue being a company that responds most sincerely and most passionately to the pure desire of engineers to 'want to work'. Company Overview Company Name: Engineer Capital Inc. Location: Magazin Sangenjaya 2 3F-3, 4-18-15 Taishido, Setagaya-ku, Tokyo Representative: Kota Horie, Representative Director Established: January 2024 Business Activities: IT Solution Business (SES/Contract Development) / Investment Business (M&A/Subsidiary Management/Fund Establishment) HP: https://engineer-capital.jp/