Paid Stock Options with Mandatory Exercise upon a Share Price Decline
First written in FY2022. 1 of 2 entries say "Advanced", first in FY2023-Q1. Latest entry: FY2023-Q1.
4 other companies' latest entry also says "Advanced".
- FY2023-Q1AdvancedAnnual report
「At a meeting of its Board of Directors held on 27 May 2022, the company resolved, pursuant to Articles 236, 238 and 240 of the Companies Act, to issue stock acquisition rights to its directors as described below. Payment was completed on 3 June 2022.」
The issuance and payment of 4,000 paid stock acquisition rights, equivalent to 400,000 shares, to 1 director, with mandatory exercise if the share price declines, have been completed. - FY2022First statedAnnual report
「These stock acquisition rights include a condition requiring their exercise if the company’s share price falls below a specified level. This places a certain degree of responsibility on the recipients when the share price declines, allowing them to share the risk of share price fluctuations with existing shareholders, restraining corporate activities that could cause the share price to decline and providing an incentive for the company’s share price to rise, which is the intended effect of stock acquisition rights.」
The company first disclosed a plan to issue 4,000 paid stock acquisition rights, equivalent to 400,000 shares, to 1 director. The terms require exercise by maturity if the one-month average share price falls below 30% of the exercise price.