Introduction of a Performance-Based Executive Compensation System
First written in FY2016. 7 of 11 entries say "Advanced", first in FY2019. Latest entry: FY2026.
77 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「At the 79th Annual General Meeting of Shareholders held on 26 June 2025, the company resolved to introduce a new performance-based stock compensation system, a stock-delivery trust system referred to below as the BIP Trust System, in place of the existing performance share unit system for directors, with the aim of further increasing their awareness of contributing to higher corporate value, fostering a shared interest in profits with shareholders, and motivating achievement of the targets set out in the management plan.」
Following the end of the PSU system’s eligibility period, the transition to the BIP Trust System was approved at a general meeting of shareholders, and executive officers became eligible in addition to directors. The system, which uses TSR, consolidated operating profit and employee engagement as performance metrics and has limits of ¥500 million and 153,000 shares over 3 fiscal years, has entered the operating phase. - FY2026-H1AdvancedAnnual report
「At the 79th Annual General Meeting of Shareholders held on 26 June 2025, the company resolved to introduce a new performance-based stock compensation system, a stock-delivery trust system referred to below as the BIP Trust System, in place of the existing performance share unit system for directors, with the aim of further increasing their awareness of contributing to higher corporate value, fostering a shared interest in profits with shareholders, and motivating achievement of the targets set out in the management plan.」
The BIP Trust System replacing the existing performance share unit system was approved at the Annual General Meeting of Shareholders, and eligibility was expanded to directors and executive officers. The system’s specific terms include contribution limits of ¥500 million and 153,000 shares over 3 fiscal years, with TSR, consolidated operating profit and employee engagement as performance targets. - FY2025RaisedAnnual report
「If this proposal is approved as originally submitted, the stock compensation will be linked not only to corporate value enhancement (share-price-related metrics), but also to medium- to long-term company performance (consolidated operating profit) and non-financial metrics (employee engagement). The compensation structure for directors and others will comprise approximately 60% fixed compensation, approximately 20% performance-based cash compensation and approximately 20% performance-based stock compensation for the President and Representative Director.」
The company is proposing a stock-delivery trust system linked not only to the existing share-price-related metrics but also to consolidated operating profit and employee engagement. The proposal covers 3 fiscal years, with upper limits of ¥500 million and 153,000 shares, and expands the eligible participants to executive officers. As of the filing date, however, it had not yet been approved by the general meeting of shareholders. - FY2024AdvancedAnnual report
「The compensation structure comprises approximately 65% fixed compensation, approximately 18% performance-based cash compensation and approximately 17% performance-based stock compensation.」
In addition to the existing fixed and variable compensation system, the company specified the proportions of cash and stock compensation as 65%, 18% and 17%. Based on consolidated operating profit of ¥1,590 million in the 78th fiscal year, the company recorded ¥14 million in performance-based cash compensation. - FY2023AdvancedAnnual report
「The company has introduced a performance-based stock compensation system (performance share unit system) for directors, excluding outside directors and directors who are Audit and Supervisory Committee members, referred to below as eligible directors.」
In addition to the existing performance-based cash compensation, the company introduced a performance-based stock compensation system covering the 3 fiscal years from April 2022 through March 2025. The grant conditions are a market capitalisation of tradable shares exceeding ¥10 billion and maintaining a Prime Market listing, with an upper limit of 64,000 shares. - FY2021AdvancedAnnual report
「Consolidated operating profit was ¥2.763 billion in fiscal 2019 and ¥2.214 billion in fiscal 2020.」
As a track record of operating the performance-based compensation system, the company recorded ¥32 million in performance-based compensation based on consolidated operating profit of ¥2.214 billion in fiscal 2020. The company continues to operate the system comprising 70% fixed compensation and 30% variable compensation, with payment conditional on operating profit of at least ¥500 million and the payment of dividends. - FY2019AdvancedAnnual report
「From the fiscal year ending March 2017, compensation for directors (excluding directors who are Audit and Supervisory Committee members) has comprised 70% fixed compensation (fixed periodic salary) and 30% variable compensation (profit-linked salary) under a performance-based compensation system, with the aim of increasing executive directors’ motivation to contribute to improved medium- to long-term performance and increased corporate value.」
As a track record of operating the performance-based compensation system, the company recorded ¥50 million in performance-based compensation for the fiscal year ended March 2019. It also describes a policy from July 2019 of increasing fixed compensation when the average consolidated operating profit for the preceding 2 years is at least ¥2 billion. - FY2017RestatedAnnual report
「The company has resolved to introduce, from the fiscal year ending March 2017, a performance-based compensation system under which 70% of conventional executive compensation will be fixed compensation (fixed periodic salary) and 30% will be variable compensation (profit-linked salary), with the aim of increasing executive directors’ motivation to contribute to improved medium- to long-term performance and increased corporate value.」
The company continues to describe a system comprising 70% fixed compensation and 30% variable compensation, with payment conditional on consolidated operating profit of at least ¥500 million and the payment of dividends, together with the profit-linked calculation formula. - FY2016First statedAnnual report
「Beginning in the following fiscal year, the fiscal year ending March 2017, we resolved to introduce a performance-based compensation system under which 70% of conventional executive compensation would be fixed compensation and 30% would be variable compensation linked to profit, with the aim of increasing executive directors’ motivation to improve medium- to long-term performance and enhance corporate value.」
Beginning in the fiscal year ending March 2017, the system was scheduled to comprise 70% fixed compensation and 30% variable compensation, subject to consolidated operating income of at least ¥500 million and the payment of dividends.