Rakuten grants stock options to subsidiary employees

Rakuten Group, Inc. has approved the issuance of 26,303 stock options to 254 employees of its subsidiaries, with a total of 2,630,300 common shares as the underlying asset. The stock options, granted without requiring cash payment, will have an exercise price of JPY 1 per option and an exercise period from November 1, 2026, to November 1, 2035. This initiative aims to align employee interests with shareholder value and enhance long-term corporate performance.

The new stock option scheme is designed to attract and retain talent in competitive markets. Exercise of the options will be tiered, with 15% becoming exercisable after one year, 35% after two years, 65% after three years, and all options exercisable after four years from the issuance date of November 1, 2025. This gradual vesting is intended to boost employee motivation and commitment to the Group's sustained growth and stock price appreciation.

The compensation structure, including these stock options, is determined by factors such as operating profit achievement, individual performance, and business unit results. It aims to integrate a broad range of employees, from entry-level to executives, into the company's ownership, reinforcing a collective sense of purpose within the Rakuten Ecosystem.