Citizen Watch to dispose of treasury stock for executive incentives

Citizen Watch Co. announced a resolution on November 25, 2025, to dispose of 449,126 shares of its common stock through a third-party allotment. The disposal, priced at JPY 1,240 per share for a total of JPY 556,916,240, will take place on December 15, 2025, with The Master Trust Bank of Japan, Ltd. (Officer compensation BIP trust account) as the allottee. This move is part of the company's performance-linked stock compensation scheme, aiming to boost executive awareness of contributions to financial results and corporate value. The stock dilution from this disposal is minimal at 0.18% of total issued shares and voting rights.

The company's performance-linked stock compensation scheme, utilizing a BIP trust, has been extended to include directors of major subsidiaries, collectively referred to as "Eligible Directors, etc." This expansion was announced on May 29, 2025, and results in revised maximum contributions to the trust. The maximum amount of money contributed to the trust has increased from JPY 210 million per business year to JPY 235 million per business year (JPY 705 million for three business years), with the maximum number of points granted to Eligible Directors, etc., increasing from 230,000 to 255,000 points per business year (765,000 for three business years). The scheme's trust period has also been extended from August 2025 to August 2028.