Mitsubishi Electric extends executive stock plan, disposes treasury stock

Mitsubishi Electric Corporation announced it will dispose of 329,400 shares of common stock from its treasury at a price of JPY 4,317 per share, totaling JPY 1,422,019,800. These shares will be allotted to The Master Trust Bank of Japan, Ltd. (BIP Trust Account) as part of its stock compensation plan for executive officers, with the disposal scheduled for November 25, 2025. This action is a continuation of the company's Board Incentive Plan (BIP) trust, established in fiscal year ended March 2017.

The company also announced additional contributions to its performance-based stock compensation plan for executive officers. The BIP trust periods, originally designed for approximately three years, will be extended, with trusts commencing in fiscal 2026 expiring at the end of August 2028. This extension will involve continued granting of points to executive officers throughout these extended periods.

The shares for the additional contributions will be acquired through this treasury stock disposal. The scheduled amount of the trust fund for fiscal 2026 is JPY 1,424,520 thousand, including stock compensation for executive officers of JPY 792,008 thousand and executive officers (associate) of JPY 579,523 thousand. The disposal represents a dilution of 0.02% of total issued shares, deemed reasonable by Mitsubishi Electric.