TOKYO, May 14 (Pulse News Wire) – Flect CO.,LTD. (4414.T) decided to extend its equity compensation plans, BIIP Trust and ESOP Trust, which were established on August 22, 2024.
The trust periods will now run until August 31, 2028. Additionally, the company resolved to propose changes to the BIIP Trust structure at its upcoming shareholders’ meeting scheduled for June 2026. These changes include transitioning non-audit committee directors to performance-based grants and increasing the cap on shares for audit committee directors. Under the revised plan, non-audit committee directors, executives, and management employees will move from fixed-point awards to performance-linked grants based on annual achievements. The scope of ESOP Trust beneficiaries will also expand to enhance overall participation in value creation. Audit committee directors will continue receiving role-based grants but with increased share caps, reflecting recent economic conditions.
At the upcoming shareholders' meeting, Flect will seek approval for extending the trust period and raising the cap on contributions and share allocations. Should the proposals pass, the modifications will take effect. The total contribution limit for BIIP Trust during the extended period is set at [TICKER_0] yen, with a maximum allocation of 73,000 shares for non-audit committee directors over two fiscal years. For audit committee directors, the cap remains unchanged at 7,300 shares. The company plans to acquire shares through the stock market or via self-disposal/new issuance within the approved limits. Other key conditions remain consistent with existing regulations, ensuring continuity in governance structures.
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