Disco to Issue Restricted Shares as Compensation

TOKYO, Jul 23 (Pulse News Wire) – DISCO Corporation (6146.T) announced , that it would issue restricted shares as part of its compensation program for executives. The issuance, scheduled for August 7, 2026, involves distributing ordinary shares totaling 3,000 to six executive members.

Each share will be priced at ¥68,590 per share, resulting in a total issuance value of ¥205.8 million. This move follows the company's decision in January 2024 to replace its stock option system with a restricted share compensation plan aimed at fostering long-term incentive alignment among executives and shareholders. Under this scheme, executives receive monetary claims which are converted into company shares through capital contributions.

The share price is determined based on the closing price of DISCO’s ordinary shares on the Tokyo Stock Exchange Prime Market on the day preceding the board resolution, ensuring fair valuation without favoring recipients excessively. In addition, the company highlighted that the shares will be subject to a non-transfer restriction period lasting until August 6, 2076, with conditions allowing for early release tied to continued service and performance criteria. Should an executive retire due to legitimate reasons during this period, restrictions could be lifted earlier.

However, significant misconduct leading to financial statement corrections would result in the immediate forfeiture of such shares by the company.