Chugokukogyo self-stock sale approved for executives

TOKYO, Jun 26 (Pulse News Wire) – Chugokukogyo CO.,LTD. (5974.T) announced that its board of directors held on June 26 approved the disposal of restricted stock awards to three directors and three executive officers.

The transaction, set to occur on July 13, involves the issuance of ordinary shares worth ¥870 per share, totaling ¥9.8 million. Three directors will receive 7,400 shares, while three executive officers will get 3,900 shares. The total monetary compensation amounting to ¥9.8 million will be converted into these restricted shares. The purpose of this measure is to incentivize long-term value creation among key personnel and enhance shareholder alignment.

The restricted period runs from July 13 until the recipients cease their positions as directors, executive officers, or employees. During this time, the shares cannot be transferred, pledged, gifted, or otherwise disposed of without approval. In addition, the company clarified that should any recipient resign or retire during the restriction period, the company would acquire those shares free of charge, except in cases deemed reasonable by the board. Upon expiration of the restriction period, the restrictions will lift entirely if the recipients maintain their roles through the next regular shareholders' meeting.

This self-share disposal is expected to dilute the existing share count by 0.33% based on the total number of outstanding shares as of March 31, which the company considers minor and justifiable given the program's objectives.