Mitsubishi Pencil to launch share-based remuneration for management

Mitsubishi Pencil Company, Limited announced its decision to implement a trust-based share remuneration plan for its management-level employees, effective May 2026. This initiative is designed to foster a sense of belonging and heighten awareness of company performance and stock price growth. It aims to enhance engagement and contribute to the company's medium- to long-term corporate value. The plan utilizes an ESOP (Employee Stock Ownership Plan) trust, where Mitsubishi Pencil will contribute funds for the trust to acquire company shares.

Under the plan, management-level employees meeting specific criteria will receive company shares from the trust, proportional to points granted by the company. These shares will be subject to transfer restrictions until the employee's retirement. Sumitomo Mitsui Trust Bank, Limited will serve as the trustee, with Custody Bank of Japan, Ltd. acting as re-trustee for asset management. A trust administrator, independent of the company and its officers, will oversee the trustee and instruct on voting rights for the shares held in trust.

The trust period is scheduled from May 2026 to the end of February 2029. All acquisition costs for the shares will be borne by Mitsubishi Pencil, ensuring no financial burden on the management-level employees. Further details of the plan will be determined and announced following a resolution by the board of directors.