Administration of Performance-Linked Compensation by the Nomination and Compensation Advisory Committee
First written in FY2019. 3 of 7 entries say "Advanced", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
34 other companies' latest entry also says "Other".
- FY2026Increase in performance-linked compensationAnnual report
「The performance-linked compensation for the fiscal year reflects the previous fiscal year’s results of net sales of ¥39.264 billion, ordinary profit of ¥3.169 billion, and profit attributable to owners of the parent of ¥2.737 billion. The company paid ¥100 million in performance-linked compensation to directors.」
The company continues its system of 3 types of performance-linked compensation and compensation for purchasing company shares. Performance-linked compensation paid to directors increased from the previously reported ¥60 million to ¥100 million. - FY2024AdvancedAnnual report
「The performance-linked compensation for the fiscal year reflects the previous fiscal year’s results of net sales of ¥33.557 billion, ordinary profit of ¥856 million, and profit attributable to owners of the parent of ¥556 million. The company paid ¥60 million in performance-linked compensation to directors.」
The company continues its system of 3 types of performance-linked compensation and compensation for purchasing company shares, and paid ¥60 million in performance-linked compensation to directors reflecting the previous fiscal year’s performance. It also discloses the dates of consideration by the Nomination and Compensation Advisory Committee and decisions by the Board of Directors for fiscal 2023 and fiscal 2024. - FY2023RestatedAnnual report
「The company has established a policy for determining the details of individual directors’ compensation. The compensation of directors, excluding directors who are Audit and Supervisory Committee members, consists of monthly fixed compensation and 3 types of variable, performance-linked compensation. Within the limits of the compensation amounts approved at the General Meeting of Shareholders, the Nomination and Compensation Advisory Committee considers the compensation, submits it to the Board of Directors, and the Board of Directors makes the decision.」
The company continues to use the framework of 3 types of performance-linked compensation, compensation for purchasing company shares, consideration by the Nomination and Compensation Advisory Committee, and decision-making by the Board of Directors. - FY2022AdvancedAnnual report
「The company has established a policy for determining the details of individual directors’ compensation. The compensation of directors, excluding directors who are Audit and Supervisory Committee members, consists of monthly fixed compensation and 3 types of variable, performance-linked compensation. Within the limits of the compensation amounts approved at the General Meeting of Shareholders, the Nomination and Compensation Advisory Committee considers the compensation, submits it to the Board of Directors, and the Board of Directors makes the decision. In addition to creating a more incentive-based compensation structure that reflects annual and medium- to long-term performance, the company has introduced a share-based compensation system, “Compensation for Purchasing Company Shares,” to promote the sharing of value with shareholders.」
The company has specifically disclosed the compensation policy, decision-making procedures, and value sharing with shareholders under a system including 3 types of performance-linked compensation and compensation for purchasing company shares. Performance-linked compensation is approximately 60% of annual compensation, and ¥69 million was paid to directors during the fiscal year. - FY2021RaisedAnnual report
「The company will revise its executive compensation system from July 2021. The details of the policy following the revision are as follows. The executive compensation structure will consist of monthly fixed compensation and 3 types of variable, performance-linked compensation, creating a more incentive-based compensation structure that reflects annual and medium- to long-term performance. In addition, the company will introduce a share-based compensation system, “Compensation for Purchasing Company Shares,” to promote the sharing of value with shareholders.」
From July 2021, the company plans to expand the previous framework of fixed and performance-linked compensation into a system linked to annual and medium- to long-term performance, including 3 types of performance-linked compensation and compensation for purchasing company shares. - FY2020AdvancedAnnual report
「<Nomination and Compensation Advisory Committee> 18 June 2020: Consideration and proposal of fixed and performance-linked compensation for directors for fiscal 2020 <Board of Directors> 25 June 2020: Decision on fixed and performance-linked compensation for directors for fiscal 2020」
The company provides the dates of the Nomination and Compensation Advisory Committee’s consideration and proposal and the Board of Directors’ decision, making the operation of performance-linked compensation more specific. - FY2019First statedAnnual report
「Directors’ compensation consists of fixed compensation and performance-linked compensation. The Nomination and Compensation Advisory Committee considers and proposes the compensation, taking into account compensation levels appropriate to the company’s size and directors’ responsibilities, the balance with employee wages and other factors, as well as each position’s contribution to performance. The proposal is submitted to the Board of Directors, which makes the decision. Normally, performance-linked compensation for directors is determined with reference to company performance, at approximately 15% of fixed compensation. If there is outstanding performance that cannot be fully reflected under the normal performance-linked compensation criteria, an additional amount of up to 10% of fixed compensation may be added.」
The company has specified for the first time the process under which the Nomination and Compensation Advisory Committee considers and proposes executive compensation and the Board of Directors makes the decision, as well as performance-linked compensation set at approximately 15% of fixed compensation and an additional allowance of up to 10%.