Chubu Electric Power Co.,Inc. | Decision on Share Acquisition Details associated with the Introduction of the Performance-Linked Equity-Based Compensation System - Press Releases(2019)
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Press Release 2019

Decision on Share Acquisition Details associated with the Introduction of the Performance-Linked Equity-Based Compensation System

July 31, 2019

Chubu Electric Power Co.,Inc.

Chubu Electric Power has announced that the agenda concerning the new performance-linked equity-based compensation system was approved in the 95th annual general shareholders’ meeting convened on June 26, 2019. The company decided to introduce the Board Benefit Trust (BBT) system (notified on April 26, 2019) (hereinafter the “Plan”) for directors (excluding external directors) and managing executive officers who do not concurrently serve as directors (hereinafter collectively “Directors”).

Today, the company has determined details of stock acquisition by the trust, to be set up under this plan (hereinafter the “Trust”) based on a trust agreement to be signed with Mizuho Trust & Banking, as detailed below:

1 Details of stock acquisition by the Trust

(1)

Type of shares to be acquired

Chubu Electric Power’s ordinary shares

(2)

Amount to be trusted for the stock acquisition

420 million yen

(3)

Method of stock acquisition

Acquisition from the stock market

(4)

Stock acquisition period

From August 19, 2019 to August 30, 2019 (tentative)


2 Overview of the Trust

(1)

Name

Board Benefit Trust (BBT)

(2)

Trustor

Chubu Electric Power

(3)

Trustee

Mizuho Trust & Banking Co., Ltd.

(4)

Beneficiaries

Those who have retired from directorship, etc. and also meet beneficiary criteria stipulated in the Directors’ Equity-Based Compensation Rules

(5)

Trust administrator

A third party with no conflict of interest with Chubu Electric Power

(6)

Trust type

Fund trust other than money trust (third-party benefit trust)

(7)

Execution date of this trust agreement

August 19, 2019

(8)

Date when fund is entrusted

August 19, 2019

(9)

Term of trust

From August 19, 2019 to the termination of the Trust
(The Trust shall continue as long as the Plan is maintained, with no specific termination date to be stipulated.)