Executive Incentives Based on Operating Profit and Stock-Based Compensation
First written in FY2022. 1 of 2 entries say "Reframed", first in FY2024. Latest entry: FY2024.
Taisei Oncho moved to the "Worse" side of this theme in 2024, 1 year before the typical company in this theme (2025).
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
18 other companies' latest entry also says "Reframed".
- FY2024ReframedAnnual report
「・Performance-linked compensation for each individual = position-based funding pool × operating income achievement rate ・From a governance perspective, the company sets the upper limit for the operating income achievement rate at 200% and the lower limit at 0%.」
The calculation of performance-linked compensation is presented as having changed from the previous combination of the operating income achievement rate and individual evaluations to a method using the position-based funding pool and operating income achievement rate, with the upper and lower limits also changed. - FY2022First statedAnnual report
「Performance-linked compensation for each individual = position-based funding pool × (company-wide operating income achievement rate × company-wide performance weighting + individual evaluation payout rate × individual evaluation weighting)」
For executive compensation, the company presents a formula for calculating performance-linked compensation that combines the operating income achievement rate and individual evaluations, specifies an upper payout limit of 170% and a lower limit of 30%, and states that stock-based compensation is also used.