Daiichi Sankyo Company Extends US Employee Stock Ownership Program

TOKYO, Jul 31 (Pulse News Wire) – Daiichi Sankyo Company,limited (4568.T) announced that its board of directors approved the continuation of its trust-based stock grant program for employees of its US subsidiary. The program, known as the Employee Stock Ownership Plan (ESOP) Trust, aims to enhance employee engagement and attract and retain talent.

Under the ESOP Trust structure, the company will set up trusts for eligible employees based on their performance levels and deliver shares or cash equivalent to those shares annually. The trust will purchase Daiichi Sankyo shares from the open market using funds contributed by the company and its US subsidiary. Shares within the trust will receive dividends but will not exercise voting rights during the trust period.

Points awarded to employees based on performance will determine the number of shares granted after a certain period. The trust's duration is extended until the end of August 2029, with planned share purchases scheduled for approximately ¥145 million in fiscal 2027 and ¥140 million in fiscal 2028, subject to adjustments based on telegraphic transfer middle rates (TTM). Any remaining shares upon termination of the trust will either continue to be utilized under similar programs or transferred, The residual assets after distribution to beneficiaries will revert to the company within the range of the trust fund minus acquisition costs and reserve funds.

Excess assets beyond the reserve funds will be donated to non-affiliated organizations after being distributed to qualified employees.