DAITO TRUST CONSTRUCTION CO.,LTD. [1878.T]
TOKYO, Apr 30 (Pulse News Wire) – Daito Trust Construction CO.,LTD. (1878.T) reintroduced its employee share ownership plan (ESOP trust) on April 30, aiming to enhance long-term corporate value and incentivize employees through stock price appreciation.
The ESOP trust was previously operational from November 2020 to December 2025 and will now run for five years beginning May 18, 2026. Under the new plan, the company will set up a trust for eligible employees who join the Daito Trust Employees' Holding Association. The trust will acquire shares expected to be purchased by the association over the next five years and sell them monthly to participating employees.
Any surplus funds generated from rising stock prices will be distributed among beneficiaries based on their contributions, while any losses due to falling prices will be covered by the company without additional burden to employees. The ESOP trust involves borrowing funds from banks to purchase company shares, with the company providing guarantees for the loans. The trust will manage the shares, distribute dividends received, and repay borrowed funds using proceeds from share sales and dividend payments.
At the end of the trust period, remaining shares will be liquidated and profits distributed accordingly, or any outstanding debts will be settled by the company based on the guarantee agreement.
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