TOKYO, Jun 24 (Pulse News Wire) – DAIHEN Corporation (6622.F) announced today that its board of directors has approved a share repurchase plan aimed at providing executive compensation through restricted stock awards. The repurchase, set to take place on July 10, 2026, involves the issuance of 2,200 ordinary shares to six executives, excluding external directors.
Each share will be valued at ¥18,670 per share, totaling ¥41.1 million. This move follows the company's decision in June 2019 to introduce a stock-based compensation program designed to align executives' interests with those of shareholders. Under this program, non-executive directors are granted restricted stock units based on their contributions to the company, subject to vesting conditions tied to their tenure. Key provisions of the agreement stipulate that the restricted period runs from July 10, 2026 until the executives cease serving as directors. During this time, the executives cannot sell, pledge, gift, or otherwise dispose of the awarded shares without approval.
Upon completion of the restricted period, or earlier under certain conditions such as resignation due to valid reasons, the restrictions will be lifted. Additionally, the company has outlined procedures for managing the shares during the restriction period, requiring the executives to hold the shares in designated accounts managed by SMBC Nikko Securities. In cases of organizational restructuring involving mergers or spin-offs, the company reserves the right to lift restrictions early or reclaim unvested shares. The repurchase price was determined based on the closing price of DAIHEN Corporation’s ordinary shares on the Tokyo Stock Exchange on June 23, 2026, which was ¥18,670. This valuation method ensures fairness and avoids arbitrary pricing.
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