Executive Compensation and Incentives Linked to Improved Performance and Corporate Value
First written in FY2017. 10 of 17 entries say "Advanced", first in FY2018-Q2. Latest entry: 2026-08-25.
The whole theme swung hardest in 2019: 1 of 6 companies on the "Worse" side.
0 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「At a meeting of the Board of Directors held on 17 April 2026, the Company decided that directors, excluding outside directors, would contribute at least a certain percentage of their basic compensation to the directors' shareholding association to acquire the Company's shares, with a view to further sharing value with shareholders. As long-term incentive compensation, 36,300 restricted shares were granted to 7 directors, excluding outside directors.」
A mechanism was added under the executive compensation scheme whereby directors contribute at least a certain percentage of their basic compensation to the directors' shareholding association to acquire the Company's shares. Restricted stock of 36,300 shares was granted to 7 directors. - FY2025RaisedAnnual report
「At a meeting of the Board of Directors held on 18 April 2025, the Company resolved to revise the compensation structure as follows, effective from fiscal 2025. Before revision: fixed compensation 60%, performance-linked compensation 30%, long-term incentive compensation 10%. After revision: fixed compensation 50%, performance-linked compensation 30%, long-term incentive compensation 20%.」
From fiscal 2025, the allocation of long-term incentive compensation in the form of restricted stock was increased from 10% to 20%, changing the compensation design to a more long-term orientation aimed at enhancing corporate value and sharing value with shareholders. - FY2024AdvancedAnnual report
「The compensation package for directors, excluding outside directors, consists of basic compensation, bonuses and restricted stock. The approximate allocation is 60% fixed compensation, 30% performance-linked compensation and 10% long-term incentive compensation.」
The composition of executive compensation was specified as fixed compensation, bonuses and restricted stock, with consolidated net sales, operating profit and net income attributable to owners of the parent established as specific performance-linked metrics. - FY2022AdvancedAnnual report
「The consolidated operating profit target for the fiscal year was ¥37.0 billion and the target net income attributable to owners of the parent was ¥24.1 billion, while actual consolidated operating profit was ¥42.3 billion and actual net income attributable to owners of the parent was ¥27.7 billion.」
For performance-linked compensation, the targets were ¥37.0 billion for operating profit and ¥24.1 billion for net income attributable to owners of the parent, while actual results were ¥42.3 billion and ¥27.7 billion, respectively. Restricted stock of 13,600 shares was granted to 7 directors. - FY2021AdvancedAnnual report
「The consolidated operating profit target for the fiscal year was ¥32.0 billion and the consolidated net income target was ¥21.1 billion, while actual consolidated operating profit was ¥36.6 billion and consolidated net income was ¥24.1 billion. As non-monetary compensation, 18,000 restricted shares were granted to 8 directors, excluding outside directors.」
For performance-linked compensation, the targets and actual results for consolidated operating profit and consolidated net income were disclosed, and actual results exceeded the targets in both cases. Restricted stock compensation of 18,000 shares was granted to 8 directors. - FY2020AdvancedAnnual report
「Directors' compensation comprises base compensation, bonuses and restricted stock. Bonuses are determined primarily based on consolidated earnings for the fiscal year, taking the overall business environment and other factors into consideration. The targets used to calculate the bonus for the fiscal year were consolidated operating income of ¥32.0 billion and consolidated net income of ¥21.8 billion, while actual results were consolidated operating income of ¥31.1 billion and consolidated net income of ¥15.6 billion.」
The policy of changing from stock options to restricted stock compensation was implemented through a compensation structure comprising base compensation, bonuses and restricted stock. Targets and actual results for operating income and net income were also disclosed for performance-linked compensation. - FY2019ReframedAnnual report
「At the 65th Annual General Meeting of Shareholders held on 21 June 2019, a resolution was passed to introduce a restricted stock compensation plan for directors in place of the existing stock option plan, with the aim of providing incentives for the sustainable enhancement of the Company's corporate value and promoting greater value sharing with shareholders.」
A resolution was disclosed to change the compensation method from the existing stock option plan to a performance-linked and continued-service-based restricted stock compensation plan. - FY2019-Q2AdvancedAnnual report
「The stock acquisition rights issued during the second quarter accounting period are as follows.」
The Company issued the Tenth Series Stock Acquisition Rights covering 185,600 shares and the Tenth Series Stock-Compensation-Type Stock Acquisition Rights covering 24,400 shares, specifying the application of incentives for directors, executive officers, employees and others. - FY2018RestatedAnnual report
「Our basic policy for determining the amount and calculation method of executive compensation is to ensure that it contributes to increasing corporate value, provides effective incentives for short- and medium- to long-term performance improvement, and is set at a level that enables us, as a leading company in information and communications network construction, to secure outstanding talent.」
The basic policy of linking executive compensation to increased corporate value, improved short-term, medium-term and long-term results, and the retention of talented personnel has been reiterated. - FY2018-Q2AdvancedAnnual report
「The stock acquisition rights issued during the second quarter accounting period are as follows.」
As a specific application of the executive compensation policy relating to incentives for increasing corporate value and improving short-term, medium-term and long-term results, the Company disclosed the issuance of 302,400 shares underlying the Ninth Series Stock Acquisition Rights and 33,600 shares underlying the Ninth Series Stock-Compensation-Type Stock Acquisition Rights. - FY2017First statedAnnual report
「Our basic policy for determining the amount and calculation method of executive compensation is to ensure that it contributes to increasing corporate value, provides effective incentives for short- and medium- to long-term performance improvement, and is set at a level that enables us, as a leading company in information and communications network construction, to secure outstanding talent.」
The basic executive compensation policy links compensation to increased corporate value, short- and medium- to long-term performance improvement, and the retention of outstanding talent.