Toyota Motor to launch employee share-based compensation plan

Toyota Motor Corporation (TMC) [TSE: 7203] announced today it will introduce a share-based compensation plan for eligible employees in “Senior Professional / Senior Management (Kanbushoku)" positions. The plan will utilize an Employee Stock Ownership Plan (ESOP) trust structure. Approved by the board on March 24, 2025, the initiative aims to align employee interests with long-term corporate value enhancement, supporting TMC's transformation into a mobility company. Under the plan, eligible employees will receive TMC shares, proceeds from share sales, and dividends after retirement, based on predetermined rules. TMC will contribute funds to establish the ESOP Trust, with an initial planned investment of 1.5 billion yen, which will cover trust fees and expenses. Mitsubishi UFJ Trust and Banking Corporation will act as trustee. The trust period will run from the trust agreement date through August 31, 2026. The company will announce details of the TMC share acquisition by the ESOP trust structure as soon as it is determined.