TOKYO, May 15 (Pulse News Wire) – Papyless CO.,LTD. (3641.T) announced today that its board of directors approved a proposal to continue its equity-based compensation system for executives through the next ordinary shareholders' meeting scheduled for June 25, 2026.
The plan was originally introduced in 2016 and aligns executive remuneration with the company's performance and share value. Under the extended program, the company will allocate funds to purchase shares via a trust mechanism. Executives will receive points corresponding to a certain number of shares based on their roles. Each fiscal year, up to 1,000 points will be distributed among executives.
The total amount allocated for purchasing shares is capped at 100 million yen during the three-year continuation period ending in June 2029. The trust structure ensures that executives bear the risk of declining share prices along with potential gains. Shares acquired through the trust will not be used for voting rights but will instead contribute to funding operational expenses and trustee fees. Any remaining shares and cash within the trust upon termination will either be transferred back to the company or donated to non-profit organizations unrelated to the company’s management.
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