JVCKENWOOD Introduces Employee Stock Ownership Plan

JVCKENWOOD Corporation approved a resolution at its latest Board of Directors Meeting, to establish a “Employee Stock Ownership Plan”  as an incentive plan for JVCKENWOOD’s senior executive officers.  JVCKENWOOD has decided to introduce the Plan as part of its incentive plan for its Senior Executives, with the aim of enhancing their motivation and morale to contribute to improvement of the Company’s medium to longterm performance and increase of its corporate value.

Under this Plan, the Trust, which is established by JVCKENWOOD through monetary contribution, acquires the Company’s shares and grants the shares and money equivalent to the market value of the shares to Senior Executives who satisfy certain beneficiary requirements in accordance with the share benefit regulations that have been established in advance.

JVCKENWOOD will grant points to eligible Senior Executives in accordance with the Stock Benefit Regulations, and if they satisfy certain beneficiary requirements, the Company’s shares, etc., will be provided in proportion to the points granted to them by following the prescribed procedures.

Since JVCKENWOOD will contribute the entire amount of money related to the establishment of the Trust, there will be no burden on the Senior Executives.