Elecom Grants Restricted Share Awards Amidst Board Meeting Resolutions

TOKYO, Jul 22 (Pulse News Wire) – Elecom CO.,LTD. (6750.T) resolved during its board meeting held on July 22 to distribute restricted shares as part of its incentive compensation program.

The distribution, set to occur on August 21, involves ordinary shares totaling 15,200. Each share will be valued at ¥1,830, resulting in a total amount of ¥27.8 million. The shares will be allocated among four directors, four executive officers, and four subsidiary directors, excluding external directors. The purpose of this distribution aligns with the company's long-term strategy to enhance shareholder value and foster closer alignment with stakeholders. Initiated in May 2019, the program was approved by shareholders in June 2019 and further refined in April 2021 due to a stock split.

In April 2023, the company introduced an executive officer system, extending similar incentives to its executives. Under the agreement, recipients cannot sell or pledge their shares until August 21, 2026, or earlier upon resignation or retirement. Full transfer restrictions will lift once the respective service period is completed, subject to conditions outlined in individual contracts. Should an executive resign prematurely, partial lifting of restrictions based on tenure served will apply. This issuance dilutes existing shares by 0.02%, deemed reasonable considering the strategic objectives of the incentive plan.

Shares will be managed through a dedicated account at Daiwa Securities Co., Ltd., ensuring compliance with restriction requirements throughout the vesting period.