Dilution of Shareholder Value from the Exercise of Stock Options
First written in FY2019. 3 of 6 entries say "Mitigated", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2017: 39 of 70 companies on the "Worse" side.
- FY2026MitigatedAnnual report
「The unexercised balance of both the No. 6 and No. 7 stock options fell to 0 shares due to expiration. Meanwhile, the unvested balance of the No. 8 and No. 9 stock options is 90,000 shares and 190,000 shares, respectively.」
All of the existing No. 6 and No. 7 stock acquisition rights expired, while the unvested balance of the No. 8 and No. 9 rights also declined from 205,000 shares at grant to 190,000 shares. - FY2026-H1WorsenedAnnual report
「27 June 2025 (No. 8): 90,000 common shares; 27 June 2025 (No. 9): 205,000 common shares」
While the No. 6 and No. 7 stock acquisition rights expired, the company disclosed new grants of the No. 8 and No. 9 stock acquisition rights covering a total of 295,000 underlying shares, indicating that potential dilution exposure has expanded again. - FY2025MitigatedAnnual report
「Number of shares underlying the 2023 Series 7 stock acquisition rights 46,000」
The number of potential shares underlying the 2023 Series 7 stock acquisition rights decreased from 51,000 shares in the previous fiscal year to 46,000, reducing the dilution exposure. - FY2024MitigatedAnnual report
「The decrease in the 2021 Series 6 stock acquisition rights resulted from their cancellation. The decrease in the 2023 Series 7 stock acquisition rights resulted from their cancellation.」
During the fiscal year, the number of shares underlying the Series 6 stock acquisition rights decreased from 97,000 to 61,000, and the Series 7 stock acquisition rights decreased from 65,000 to 51,000, reducing the number of potential shares. - FY2023WorsenedAnnual report
「Resolution dated 26 January 2023 Number of shares underlying the stock acquisition rights 65,000 (Note) 1」
The issuance of stock acquisition rights in January 2023 added 65,000 potential shares, increasing the dilution exposure from stock options. - FY2019First statedAnnual report
「As of the end of the fiscal year, the number of potential shares represented by these stock options was 212,380 shares, equivalent to 4.2% of the total 5,050,920 issued shares.」
The company quantifies the dilution of existing shareholders' share value and voting rights percentage upon the exercise of stock options.