TOKYO, Jun 24 (Pulse News Wire) – PCA Corporation (9629.T) announced that its board of directors decided on June 24 to dispose of own shares on July 10. The disposal involves transferring 52,800 ordinary shares to a retiring director without requiring cash payment or property delivery.
The fair value of these shares totals ¥82.4 million. This action follows the introduction of a deferred share award system aimed at promoting long-term alignment between management and shareholders through stockholding incentives. The system was approved during the 38th Ordinary General Meeting of Shareholders held on June 22, 2018. In 2021, the system underwent revisions at the 41st Ordinary General Meeting of Shareholders.
Under the revised system, each executive director receives points annually based on their basic annual compensation, up to a limit of 50,000 shares per fiscal year. Upon retirement, these points are converted into shares at a rate of one point per share. The accounting expense associated with this deferred share award does not exceed ¥75 million per fiscal year. Additionally, in cases of organizational restructuring such as mergers or spin-offs, the company may opt to compensate retired directors with cash equivalent to the market value of the shares instead of delivering the shares themselves, subject to certain conditions.
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