Performance-Linked and Equity Compensation, and Compensation Decisions by the Governance Committee
First written in FY2021. 3 of 8 entries say "Advanced", first in FY2022-Q3. Latest entry: FY2026.
13 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Equity compensation as a medium- to long-term incentive will use ROIC, relative TSR and ESG metrics (CO2 emissions reductions and employee engagement scores) as performance metrics. Points will vary between 5% and 195%, with 100% representing achievement of the targets.」
The performance-linked compensation metrics were reorganized from an explanation centered on EBITDA, net income and ordinary income to a framework incorporating ROIC, relative TSR and ESG metrics into equity compensation. - 2026-03-24AdvancedGovernance
「The principal change in the revised system is the adoption of ROIC (return on invested capital), relative TSR (an indicator comparing the growth rate of the Company’s share price with that of TOPIX), and ESG indicators as performance-linked metrics.」
The existing policy on performance-linked compensation was revised ahead of the next medium-term management plan, specifically designating ROIC, relative TSR, and ESG indicators as performance-linked metrics. - FY2025Update to achievement rates against plans for performance-linked compensationAnnual report
「The achievement rates against the plan for the fiscal year were 135% for consolidated EBITDA, 111% for consolidated net income, and 163% for consolidated ordinary income.」
The achievement rates against the plan for the 3 metrics used for performance-linked compensation were updated. In addition, the indicative compensation mix from 1 April 2025 was set at 60 for base compensation, 25 for performance-linked compensation and 15 for non-monetary compensation. - FY2024Update to achievement rates against plans for performance-linked compensationAnnual report
「The achievement rates against the plan for the fiscal year were 104% for consolidated EBITDA, 113% for consolidated net income, and 98% for consolidated ordinary income.」
The fiscal-year results for the 3 metrics used for performance-linked compensation were updated. They changed from the previous year's 68% for EBITDA, 56% for net income and 78% for ordinary income to 104%, 113% and 98%, respectively. - FY2023Disclosure of achievement rates against plans for performance-linked compensationAnnual report
「The achievement rates against the plan for the fiscal year were 79% for consolidated EBITDA, 200% for consolidated net income, and 200% for consolidated ordinary income.」
Specific achievement rates against the plan for the fiscal year were disclosed for the 3 metrics used for performance-linked bonuses and equity compensation. - FY2022AdvancedAnnual report
「The achievement rates against the plan for the fiscal year were 68% for consolidated EBITDA, 56% for consolidated net income, and 78% for consolidated ordinary income.」
Specific fiscal-year results were disclosed for performance-linked compensation using the achievement rates against plans for consolidated EBITDA, consolidated net income and consolidated ordinary income. - FY2022-Q3AdvancedAnnual report
「Based on a resolution of the Board of Directors dated 20 May 2021, we introduced a new equity compensation plan for our directors, excluding directors who are Audit and Supervisory Committee members and outside directors, to increase their awareness of contributing to improved medium- to long-term business performance and increased corporate value.」
Additional disclosure was made on the introduction and operation of a plan under which shares are delivered to directors through a trust as part of the performance-linked and equity compensation policy. At the end of the third quarter, the trust held 154,300 shares with a carrying amount of ¥299 million. - FY2021First statedAnnual report
「Our basic policy is to ensure objectivity and transparency by adopting a compensation structure linked to shareholder interests so that compensation for directors functions sufficiently as an incentive to improve business performance and sustainably increase corporate value over the medium to long term, setting appropriate compensation levels for individual directors based on their respective responsibilities, and obtaining deliberation by the Governance Committee, which has a majority of outside directors.」
For executive compensation, the policy of combining fixed compensation with performance-linked bonuses and equity compensation and determining compensation following deliberation by the Governance Committee was set out systematically for the first time.