MUFG Bank, Ltd. Announces MUFG to Introduce Share-Based Compensation Plan for Employees
TOKYO, March 28, 2024--(BUSINESS WIRE)--
Mitsubishi UFJ Financial Group, Inc. (MUFG)
MUFG Bank, Ltd. Announces MUFG to Introduce
Share-Based Compensation Plan for Employees
MUFG today announced that it has decided to introduce a share-based compensation plan using the ESOP[1] trust structure as a stock incentive plan (the "Plan") for employees in management positions who satisfy certain requirements (the "Eligible Employees") at three MUFG subsidiaries (MUFG Bank, Ltd., Mitsubishi UFJ Trust and Banking Corporation, and Mitsubishi UFJ Morgan Stanley Securities Co., Ltd., hereinafter collectively referred to as the "Covered Companies").
1. Purpose of introducing the Plan
(1) Defining its purpose as being "Committed to empowering a brighter future," MUFG positions human capital as one of the most important types of capital and aims to become a global financial group capable of contributing to society and our customers by empowering each employee to play an active role and thrive.
(2) To realize this vision, MUFG’s human capital management is centered around strengthening business competitiveness and fostering a culture of taking on challenges and transformation. In order to enhance the well-being of our employees and achieve sustainable growth for both individuals and the organization, MUFG has decided to introduce the Plan, setting our sights on reinforcing the virtuous cycle of increasing MUFG’s corporate value and human capital management, and improving employee engagement and retention.
2. Contents of the Plan
(1) The Plan adopts a scheme called an employee stock ownership plan (the "ESOP Trust"). The ESOP Trust, similar to performance share plans or restricted stock plans prevalent in the U.S., would be a stock incentive plan under which MUFG shares and money equivalent to the liquidation value of MUFG shares are delivered or paid to Eligible Employees who satisfy certain requirements based on predetermined share-based compensation plan rules.
(2) The Plan is expected to enable the Eligible Employees to benefit financially from MUFG’s growth by holding shares in the company, to encourage each employee to strive to improve corporate value and ROE from a medium- to long-term perspective by better demonstrating their leadership. In addition, making the Eligible Employees shareholders is expected to increase their job satisfaction and pride in working for MUFG, as well as boosting retention by diversifying their incentives.
(3) Further details, including the acquisition of shares by the ESOP Trust, will be announced when they are resolved.
[1] Abbreviation of Employee Stock Ownership Plan
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(Reference)
[Outline of the Trust Agreement]
(i) Trust type | A money trust other than an individually-operated designated money trust (third party benefit trust) |
(ii) Trust purpose | To provide incentives to eligible employees |
(iii) Settlor | MUFG |
(iv) Trustee | Mitsubishi UFJ Trust and Banking Corporation (Co-trustee: The Master Trust Bank of Japan, Ltd.) |
(v) Beneficiaries | Eligible employees satisfying the beneficiary requirements |
(vi) Trust administrator | A third party that does not have any interest in the Covered Companies (certified public accountant) |
(vii) Trust agreement date | May 2024 (planned) |
(viii) Trust period | From May 2024 (planned) to August 31, 2027 (planned) |
(ix) Start date | July 1, 2024 (planned) |
(x) Exercise of voting rights | No exercise |
(xi) Type of acquired shares | Ordinary shares of MUFG |
(xii) Amount of trust money | Unspecified (to be disclosed upon resolution) |
(xiii) Timing of acquisition of shares | Unspecified (to be disclosed upon resolution) |
(xiv) Method of acquisition of shares | Unspecified (to be disclosed upon resolution) |
(xv) Holder of vested rights | MUFG |
(xvi) Residual assets | Residual assets that can be received by MUFG, as the holder of the vested rights, shall be within the limit of the trust expense reserve calculated by deducting the cost for acquiring the shares from the Trust from the trust money. |
Contact:
MUFG Bank, Ltd.
Toshinao Endou +81-3-3240-1111
Managing Director, Head of Documentation & Corporate Secretary Department
Corporate Administration Division
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Contacts
MUFG Bank, Ltd.
