Directors’ Performance-Linked Bonuses Tied to Profit Attributable to Owners of the Parent
First written in FY2018. . Latest entry: FY2022.
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
44 other companies' latest entry also says "Other".
- FY2022Resetting the performance-linked compensation policyAnnual report
「Performance-linked compensation is cash compensation based on an indicator showing the status of profit as prescribed in Article 34, paragraph 1, item 3 of the Corporation Tax Act. Subject to the achievement of internal targets set at the beginning of the fiscal year, it is determined and paid each June using the following method. (a) The upper limit for total performance-linked compensation is 3% of “net income attributable to owners of the parent” for the consolidated fiscal year (hereinafter, “consolidated net income”), rounded down to the nearest yen.」
The Company disclosed its current calculation policy for performance-linked compensation, under which it is paid each June and capped at 3% of net income attributable to owners of the parent. - FY2019Changes to the calculation terms for performance-linked bonusesAnnual report
「The total amount of performance-linked bonuses will be 1.5% of “net income attributable to owners of the parent” for the 13th consolidated fiscal year (from 1 April 2019 to 31 March 2020), rounded down to the nearest yen. However, because the Company's total personnel expenses are maintained at no more than 6% of consolidated revenue, the total performance-linked bonuses will be capped at the total personnel expenses. No performance-linked bonuses will be paid if “net income attributable to owners of the parent” for the 13th consolidated fiscal year (from 1 April 2019 to 31 March 2020) is less than ¥6,200 million.」
The calculation terms for FY2020 were changed from the previous FY2019 terms of 3% of profit and a ¥4,480 million threshold to 1.5% of profit and a ¥6,200 million threshold. - FY2018First statedAnnual report
「The total amount of performance-linked bonuses will be 3% of “net income attributable to owners of the parent” for the 12th consolidated fiscal year (from 1 April 2018 to 31 March 2019), rounded down to the nearest yen. However, if personnel expenses exceed 6% of revenue, the total performance-linked bonuses will be capped at ¥118 million. No performance-linked bonuses will be paid if “net income attributable to owners of the parent” for the 12th consolidated fiscal year is less than ¥4,480 million.」
For the fiscal year ended March 2019, the Company introduced a performance-linked bonus system based on 3% of net income attributable to owners of the parent, capped at ¥118 million when the personnel expense condition applies, with no payment if profit is below ¥4,480 million.