Performance-Linked Executive Compensation System
First written in FY2017. 6 of 9 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2025: 4 of 19 companies on the "Worse" side.
23 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「From fiscal 2025, various ESG ratings and materiality-related key performance indicators used to monitor progress on sustainability initiatives, including addressing climate change and providing food that contributes to health value creation and sustainability, have been incorporated into the calculation formula for medium-term performance-linked stock compensation for the company's directors, excluding outside directors and non-residents of Japan, and executive officers, excluding non-residents of Japan, as an incentive for sustainability initiatives. The weighting of these evaluation indicators is 20% for all company-wide supervising officers, division officers and business officers.」
From fiscal 2025, the company incorporated sustainability-related ESG ratings and materiality KPIs into medium-term performance-linked stock compensation, with an evaluation weighting of 20%. - 2026-05-11AdvancedTimely disclosure
「To continue the BBT and J-ESOP programs, the Company decided to make additional cash contributions to the BBT Trust and J-ESOP Trust (the “additional trusts”) to fund the acquisition by the trusts of shares expected to be required for future benefits.」
For the existing performance-linked director compensation program, BBT, the Company plans to make an additional contribution of ¥800,000,000 and acquire up to 493,700 shares to continue the program. The canonical thread itself remains unchanged. - FY2025ReframedAnnual report
「The director compensation system is designed so that fixed compensation, short-term performance-linked compensation and medium-term performance-linked stock compensation account for approximately 40%:30%:30%, respectively, for directors who also serve as representative directors or senior executive officers or above, and approximately 50%:25%:25%, respectively, for directors who also serve as executive officers or below.」
The company organized the composition of executive compensation by position using ratios for fixed, short-term performance-linked and medium-term stock compensation. The achievement rate for short-term performance-linked compensation against the previous fiscal year's budget was 115%. - FY2023AdvancedAnnual report
「The executive compensation system is designed so that fixed compensation, short-term performance-linked compensation and medium-term performance-linked stock compensation account for approximately 75%:15%:10%, respectively. Performance-linked compensation for the current fiscal year is determined based on the achievement rate against the consolidated ordinary profit budget for the previous fiscal year, and the achievement rate for fiscal 2021 was 133%.」
The company disclosed the 75%:15%:10% ratio for fixed, short-term performance-linked and medium-term stock compensation, respectively, and the 133% achievement rate for fiscal 2021. - FY2023-Q2AdvancedAnnual report
「Based on a resolution of the 78th Annual General Meeting of Shareholders held on 28 June 2022, the company introduced the performance-linked stock compensation plan known as the Board Benefit Trust (BBT) from the second quarter of the current consolidated fiscal year for directors, excluding outside directors and non-residents of Japan, and executive officers, excluding non-residents of Japan. Directors and executive officers are collectively referred to as "directors and executive officers" below.」
In addition to the existing performance-linked compensation framework, the company actually introduced the BBT performance-linked stock compensation plan for directors and executive officers from the second quarter accounting period. - FY2022AdvancedAnnual report
「Compensation for management and directors consists of fixed compensation, short-term performance-linked compensation and medium-term performance-linked stock compensation.」
In addition to the existing fixed and performance-linked compensation, the company introduced the Board Benefit Trust (BBT), a medium-term performance-linked stock compensation plan, with target ratios of 75%:15%:10%. - FY2021AdvancedAnnual report
「The compensation system for directors other than outside directors is designed so that performance-linked compensation accounts for approximately 35% at most. ... The achievement rate for fiscal 2019 was 76%.」
The company disclosed the calculation method for performance-linked compensation using consolidated ordinary profit as the metric, the specific system limit of approximately 35% for the compensation ratio, and the previous year's achievement rate of 76%. - FY2018RestatedAnnual report
「Compensation consists of fixed compensation and performance-linked compensation, with consolidated ordinary profit serving as the performance evaluation criterion for the latter. Compensation for outside directors consists solely of fixed compensation.」
The company continues to combine fixed compensation with performance-linked compensation based on consolidated ordinary profit. - FY2017First statedAnnual report
「A performance-linked compensation system was introduced pursuant to a resolution of the Board of Directors dated 28 June 2016. Compensation for management and directors consists of fixed compensation and performance-linked compensation, with consolidated ordinary profit serving as the performance evaluation criterion for the latter.」
The company reported the introduction of a system combining fixed compensation with performance-linked compensation based on consolidated ordinary profit.