FinancialKadokawa Corporation
Notice Regarding the Disposal of Treasury Shares for Performance-Linked Stock Remuneration
1 Jan 20262 pages~1 min full read
KADOKAWA Corporation will dispose of 903,100 treasury shares at 3,250 yen per share, totaling approximately 2.94 billion yen, on February 18, 2026.
See it on page 1The shares will be allocated to a trust account managed by Sumitomo Mitsui Trust Bank to fund a performance-linked stock remuneration program for executive officers and subsidiary directors.
See it on page 1This disposal results in a 0.61% dilution of total issued shares and voting rights based on figures from September 30, 2025.
See it on page 2The trust-based incentive system, established in 2017, covers leadership across the KADOKAWA group, including entities such as Dwango and KADOKAWA Future Publishing.
See it on page 1Voting rights associated with the shares held in the trust will not be exercised throughout the duration of the trust period, which concludes in August 2027.
See it on page 1The disposal price of 3,250 yen per share was set based on the Tokyo Stock Exchange closing price on the business day prior to the board's resolution.
See it on page 2KADOKAWA Corporation has authorized the disposal of treasury shares to support its performance-linked stock remuneration system. This strategic financial move involves the issuance of 903,100 shares of common stock at a price of 3,250 yen per share, totaling approximately 2.94 billion yen. The transaction is scheduled for completion on February 18, 2026, with the shares being allocated to a trust account managed by Sumitomo Mitsui Trust Bank.
The primary objective of this disposal is to sustain an incentive program designed for executive officers of KADOKAWA and directors of its subsidiaries, including entities such as Dwango and KADOKAWA Future Publishing. By utilizing a trust-based system established in 2017, the company aims to align executive compensation with shareholder value and long-term corporate growth. The disposal price was determined based on the closing market price of the stock on the Tokyo Stock Exchange on the business day immediately preceding the board's resolution, ensuring an objective and fair valuation.
The scope of this action affects the broader KADOKAWA group within the Japanese media and gaming industry. The total number of shares being disposed of represents a dilution of 0.61% relative to the total issued shares and voting rights as of September 30, 2025. Management has concluded that this level of dilution is reasonable and will have a negligible impact on the secondary market. The trust is structured as a third-party managed entity, and notably, the voting rights associated with the shares held within the trust will not be exercised during the trust period, which is currently slated to run through August 2027.
