Suzuki Motor's board resolved on October 14, 2026 to dispose of 400,560 treasury shares as restricted-share compensation for 20,028 employees. The total is ¥824.95mn, at ¥2,059.5 a share, with payment due on July 1, 2027.
How the award works
This is not a cash raise. Suzuki Motor will grant employees monetary compensation claims, and they will contribute those claims in kind to receive the shares. Each person's amount reflects their contribution and other factors. The shares are priced at the October 13, 2026 Tokyo Stock Exchange close, which the company says is not an especially favourable price.
The company puts the dilution at 0.02% of the 1,964,586,400 total issued shares at March 31, 2026. It calls the plan, which the board adopted on August 5, 2026, a way to make employees treat the company's growth as their own concern.
Five years of restrictions
From July 1, 2027 to June 30, 2032, recipients cannot sell, pledge, give away or otherwise dispose of the shares. The shares sit in a dedicated account at SMBC Nikko Securities.
An employee who leaves before the period ends forfeits the shares, which Suzuki Motor takes back for nothing, unless the board accepts the reason as justified. In that case the restrictions on all of the person's shares lift at departure. Shares still restricted when the period ends are also taken back free. If a merger agreement under which Suzuki Motor would disappear, a share exchange agreement making it a wholly owned subsidiary, a share transfer plan or another reorganisation is approved during the period, the board can lift all restrictions before the reorganisation takes effect.
The extraordinary report says Suzuki Motor and the employees plan to sign allotment agreements containing these terms. Suzuki Motor filed the report on the disposal under the Financial Instruments and Exchange Act.