Employee Stock Ownership Plans
We offer methods to smoothly and efficiently adopt ESOP. After adoption, our experienced staff provides supports to governing boards and bureaus of the plan.
Employee Stock Ownership Plans (ESOP)
The ESOP is a benefit program, in which employees periodically acquire and hold stocks of their own companies and, in which companies support the medium- to long-term asset formation of their employees.
As necessary funds are deducted from the employees’ salaries on a regular basis, the employees need to contribute only a small amount to purchase of their company stocks in a unit less than the normal unit of trading offered on the market.
Status of ESOP (Survey as of FY2016)
- Companies surveyed
- As of March 31, 2017, 3,144 out of 3,552 domestic companies listed on the Tokyo Stock Exchange, which have ESOPs and have signed a business entrustment contract with one of the five securities companies, namely Daiwa Securities, SMBC Nikko Securities, Nomura Securities, Mizuho Securities and Mitsubishi UFJ Morgan Stanley Securities.
- (Source) Summary of FY2016 Employee Stock Ownership Plan, Tokyo Stock Exchange, Inc.
Advantages of adopting the ESOP
There is no guarantee of principal in stock investments. They carry the risk of a possible loss of the amount of the principal invested by declines in stock prices as a result of changes in business performance or financial condition of the company or changes in third-party evaluations of the company.
Company’s Support System Accompanied by the Adoption and Operation of the ESOP
Image of Support System
- 1. Time of adoption
- 2. Operation period
Many of the ESOPs in Japan are operated in accordance with the Guidelines on Employee Stock Ownership Plans set forth by the Japan Securities Dealers Association.
To view the Guidelines on Employee Stock Ownership Plans, click here.
- Note)These materials are provided solely for the purpose of providing information to customers, and opinions expressed in these materials may not be appropriate for all customers. Therefore, you are asked to evaluate appropriateness of these materials by yourself.