TOKYU CONSTRUCTION CO., LTD. [1720.T]
TOKYO, Jun 24 (Pulse News Wire) – Tokyu Construction Co., LTD. (1720.T) resolved to distribute restricted shares to executives as part of an incentive program aimed at enhancing long-term corporate value and fostering greater alignment with shareholders.
On June 24, 2026, the company plans to issue 42,558 ordinary shares worth ¥10,000 per share, totaling ¥425,580,000, to four non-executive directors and four executive officers who do not concurrently hold director positions. Under the newly implemented stock-based compensation plan, approved during the May 22 board meeting and ratified at the June 24 annual general meeting, the restricted shares come with a 30-year holding period. The distribution will occur through a cashless method, where recipients will exchange cash equivalents for the shares without making additional payments.
The agreement stipulates that the shares cannot be transferred until July 22, 2056, unless the recipient continues to serve in their respective roles within the company or its subsidiaries throughout the restriction period. Should an executive retire due to normal retirement age or other legitimate reasons, the restrictions would lift immediately upon departure. Additionally, the company retains the right to reclaim the shares free of charge if an executive violates laws or regulations during the restriction period.
This move underscores TOKYO Construction's commitment to aligning executive interests with shareholder value while adhering to stringent governance standards.
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