Japanese automaker Toyota Motor Corp. ($TM) is getting creative with its shareholder rewards as it looks to boost its slumping stock price.
The world’s largest vehicle manufacturer said it plans to offer several new perks and incentives to retail investors after the company’s share price declined about 10% this year.
The new rewards include digital credits and a chance to win tickets to motorsport events.
Investors who have held at least 1,000 Toyota shares for five years or longer will receive credits worth about $200 U.S. in a “Toyota Wallet,” a smartphone payment app.
At the same time, eligible shareholders can enter draws to win tickets to see races at the Fuji Speedway later in the year.
This is the first time that Toyota has implemented such a program, and it goes beyond the usual stock buybacks and dividend payouts that publicly traded companies typically use to reward and incentivize shareholders.
Analysts said that the new rewards are a blatant attempt by Toyota to attract retail investors and help boost its sagging share price.
However, these types of shareholder rewards are drawing criticism from global funds and institutional investors who aren’t eligible to benefit from them.
Toyota isn’t the first publicly traded company to offer creative shareholder rewards to entice retail investors. Last December, Rakuten Group (RKUNY) offered one-year free mobile plans to its shareholders.
The stock of Toyota Motor Co. has declined 26% over the last 12 months to currently trade at $181.48 U.S. per share.
However, the company’s share price is up 3% on news of its new shareholder reward program.
