Mitsubishi Electric Corporation announced the planned amount of stock compensation for Executive Officers and Executive Officers (Associate) under the performance-based stock compensation plan for the fiscal 2025.
(The said amount of stock compensation refers to the amount of trust money to be contributed to the Board Incentive Plan (BIP) Trust, which will be adopted for the performance-based stock compensation plan.) The details of the trust are as follows:
Details of the Trust Agreement
(1)Type of trust: Trust of money other than that held in a money trust for separate investment (third-party benefit trust)
(2)Purpose of trust: To incentivize Executive Officers and Executive Officers (Associate)
(3)Consignor: Mitsubishi Electric Corporation
(4)Trustee: Mitsubishi UFJ Trust and Banking Corporation (Co-trustee: The Master Trust Bank of Japan, Ltd.)
(5)Beneficiary: Executive Officers and Executive Officers (Associate) who satisfy the requirements as beneficiaries.
(6)Trust executor: Third party (certified public accountant) with no interest in Mitsubishi Electric Corporation
(7)Trust agreement date: May 30, 2024 (scheduled)
(8)Term of trust: May 30, 2024 (scheduled) to August 31, 2027 (scheduled).
(9)Scheduled amount of trust fund: 1,292,205 thousand yen (Reference) Amount of stock compensation for Executive Officers and Executive Officers (Associate).
- For Executive Officers: Stock compensation for fiscal 2025: 782,400 thousand yen
- For Executive Officers (Associate): Stock compensation for fiscal 2025: 252,000 thousand yen
Notes:
1) The scheduled trust fund amount includes the residual assets to be succeeded from the existing BIP Trust.
2) The scheduled amount of the trust fund includes trust fees and trust expenses as well as the amount affected by stock price fluctuations at the time of stock acquisition and therefore does not match the total amount of stock-based compensation for Executive Officers and Executive Officers (Associate)
3) The amount indicated is the total amount of the PSU portion of stock-based compensation at its maximum award rate (200%) and the RSU portion of stock-based compensation.
(10)Type of shares to be acquired: Common stock of Mitsubishi Electric Corporation
(11)Method of acquisition of shares: To be acquired from the stock market
(12)Time of acquisition of shares: June 4, 2024 (scheduled) - June 14, 2024 (scheduled)
(13)Vested rights holders: Mitsubishi Electric Corporation
(14)Exercise of voting rights: Voting rights shall not be exercised.
(15)Residual assets: The residual assets to be received by Mitsubishi Electric Corporation, as the vested right holder, shall be within the amount of Trust Expense Reserve, which is the amount of the Trust Fund excluding the funds for share acquisition.
