Incentive Design Using EBITDA-Linked Stock Acquisition Rights
First written in FY2017-Q2. 8 of 16 entries say "Reframed", first in FY2018-Q1. Latest entry: FY2026.
Sms moved to the "Worse" side of this theme in 2019, 5 years before the typical company in this theme (2024).
3 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2027 exceeds each of the thresholds set out in (a) through (d) below.」
For the 20th and 21st Stock Acquisition Rights, the conditions were amended to adjust adjusted operating profit for the amount of reduced amortization expense associated with impairment losses in the fiscal year ending March 2026, thereby changing the definition of the performance-linked metric. - FY2026-H1SoftenedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2028 exceeds each of the thresholds set out in (a) through (d) below: (a) adjusted operating profit exceeds ¥8,355 million: exercisable percentage of 20%; (b) adjusted operating profit exceeds ¥8,937 million: exercisable percentage of 50%; (c) adjusted operating profit exceeds ¥9,547 million: exercisable percentage of 70%; (d) adjusted operating profit exceeds ¥10,847 million: exercisable percentage of 100%.」
For the 21st Stock Acquisition Rights, the target fiscal year was set as the fiscal year ending March 2028, with four thresholds of adjusted operating profit: ¥8,355 million, ¥8,937 million, ¥9,547 million and ¥10,847 million. The final threshold decreased from ¥14,231 million for the previous fiscal year ending March 2027 to ¥10,847 million. - FY2025-H1RaisedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2027 exceeds each of the thresholds set out in (a) through (d) below: (a) adjusted operating profit exceeds ¥10,962 million: exercisable percentage of 20%; (b) adjusted operating profit exceeds ¥11,726 million: exercisable percentage of 50%; (c) adjusted operating profit exceeds ¥12,525 million: exercisable percentage of 70%; (d) adjusted operating profit exceeds ¥14,231 million: exercisable percentage of 100%.」
A four-stage structure was introduced for the 20th Stock Acquisition Rights based on adjusted operating profit for the fiscal year ending March 2027, with exercisable percentages of 20%, 50%, 70% and 100% at ¥10,962 million, ¥11,726 million, ¥12,525 million and ¥14,231 million, respectively. The target fiscal year and final profit threshold were raised from the previous fiscal year ending March 2026 benchmarks. - FY2024-Q1RaisedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2026 exceeds each of the thresholds set out in (a) through (c) below: (a) adjusted operating profit exceeds ¥9,858 million: exercisable percentage of 10%; (b) adjusted operating profit exceeds ¥11,265 million: exercisable percentage of 70%; (c) adjusted operating profit exceeds ¥12,799 million: exercisable percentage of 100%.」
A new performance-linked structure was introduced for the 19th Stock Acquisition Rights based on adjusted operating profit of ¥9,858 million, ¥11,265 million and ¥12,799 million for the fiscal year ending March 2026, with exercisable percentages of 10%, 70% and 100%, respectively. Each profit threshold has been raised from the previous fiscal year ending March 2025 benchmarks. - FY2023-Q2RestatedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2025 exceeds each of the thresholds set out in (a) through (c) below: (a) adjusted operating profit exceeds ¥8,532 million: exercisable percentage of 10%; (b) adjusted operating profit exceeds ¥9,750 million: exercisable percentage of 70%; (c) adjusted operating profit exceeds ¥11,077 million: exercisable percentage of 100%.」
The performance-linked structure of the 18th Stock Acquisition Rights, based on adjusted operating profit of ¥8,532 million, ¥9,750 million and ¥11,077 million for the fiscal year ending March 2025, is reaffirmed, with exercisable percentages of 10%, 70% and 100%, respectively. - FY2023-Q1ReframedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2025 exceeds each of the thresholds set out in (a) through (c) below: (a) adjusted operating profit exceeds ¥8,532 million: exercisable percentage of 10%; (b) adjusted operating profit exceeds ¥9,750 million: exercisable percentage of 70%; (c) adjusted operating profit exceeds ¥11,077 million: exercisable percentage of 100%.」
A performance-linked structure was introduced for the 18th Stock Acquisition Rights based on adjusted operating profit of ¥8,532 million, ¥9,750 million and ¥11,077 million for the fiscal year ending March 2025, with exercisable percentages of 10%, 70% and 100%, respectively. - FY2022-Q2RestatedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2024 exceeds each of the thresholds set out in (a) through (c) below.」
The performance-linked structure of the 17th Stock Acquisition Rights, based on adjusted operating profit of ¥7,390 million, ¥8,444 million and ¥9,594 million for the fiscal year ending March 2024, is reaffirmed, with exercisable percentages of 10%, 70% and 100%, respectively. - FY2022-Q1ReframedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2024 exceeds each of the thresholds set out in (a) through (c) below: (a) adjusted operating profit exceeds ¥7,390 million: exercisable percentage of 10%; (b) adjusted operating profit exceeds ¥8,444 million: exercisable percentage of 70%; (c) adjusted operating profit exceeds ¥9,594 million: exercisable percentage of 100%.」
The 17th Stock Acquisition Rights were issued, with adjusted operating profit for the fiscal year ending March 2024 as the performance-linked metric. The structure was changed to set exercisable percentages of 10%, 70% and 100% depending on adjusted operating profit of ¥7,390 million, ¥8,444 million and ¥9,594 million, respectively. - FY2021RestatedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2023 exceeds either of the thresholds set out in (a) and (b) below.」
The performance-linked structure of the 16th Stock Acquisition Rights, based on adjusted operating profit of ¥6,647 million and ¥7,237 million for the fiscal year ending March 2023, is reaffirmed. - FY2021-Q1ReframedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2023 exceeds either of the thresholds set out in (a) and (b) below: (a) adjusted operating profit exceeds ¥6,647 million: exercisable percentage of 10%; (b) adjusted operating profit exceeds ¥7,237 million: exercisable percentage of 100%.」
For the 16th Stock Acquisition Rights, a structure was introduced using adjusted operating profit for the fiscal year ending March 2023 as the metric, with exercisable percentages of 10% and 100% depending on levels of ¥6,647 million and ¥7,237 million, respectively. - FY2020-Q2ReframedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if adjusted operating profit for the fiscal year ending March 2022 exceeds each of the thresholds set out in (a) through (c) below: (a) adjusted operating profit exceeds ¥6,408 million: exercisable percentage of 10%; (b) adjusted operating profit exceeds ¥7,322 million: exercisable percentage of 70%; (c) adjusted operating profit exceeds ¥8,319 million: exercisable percentage of 100%.」
For the 15th Stock Acquisition Rights, the performance-linked metric was changed from the previous EBITDA and other measures to adjusted operating profit, with exercisable percentages of 10%, 70% and 100% depending on adjusted operating profit of ¥6,408 million, ¥7,322 million and ¥8,319 million, respectively, for the fiscal year ending March 2022. - FY2019-Q1AdvancedAnnual report
「① Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if EBITDA for the fiscal year ending March 2021 exceeds each of the thresholds set out in (a) through (c) below: (a) EBITDA exceeds ¥7,670 million: exercisable percentage of 10%; (b) EBITDA exceeds ¥8,764 million: exercisable percentage of 50%; (c) EBITDA exceeds ¥9,958 million: exercisable percentage of 100%.」
A new performance-linked structure was introduced for the 14th Stock Acquisition Rights, based on EBITDA for the fiscal year ending March 2021, with exercisable percentages of 10%, 50% and 100% depending on achievement of ¥7,670 million, ¥8,764 million and ¥9,958 million, respectively. - FY2018-Q1ReframedAnnual report
「① Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if operating profit for the fiscal year ending March 2020 exceeds each of the thresholds set out in (a) through (c) below: (a) operating profit exceeds ¥4,853 million: exercisable percentage of 10%; (b) operating profit exceeds ¥6,301 million: exercisable percentage of 50%; (c) operating profit exceeds ¥8,011 million: exercisable percentage of 100%.」
Unlike the previous EBITDA-linked structure, the new 13th Stock Acquisition Rights are designed with exercisable percentages of 10%, 50% and 100% based on operating profit of ¥4,853 million, ¥6,301 million and ¥8,011 million, respectively, for the fiscal year ending March 2020. The performance-linked incentive metrics and targets have shifted to an operating-profit basis. - FY2017-Q2First statedAnnual report
「Stock acquisition rights holders may exercise only the prescribed percentage (the “exercisable percentage”) of the stock acquisition rights allocated to them if EBITDA for the fiscal year ending March 2019 exceeds each of the thresholds set out in (a) through (c) below: (a) EBITDA exceeds ¥4,977 million: exercisable percentage of 10%; (b) EBITDA exceeds ¥6,462 million: exercisable percentage of 50%; (c) EBITDA exceeds ¥8,216 million: exercisable percentage of 100%.」
For the 12th Stock Acquisition Rights, new conditions were established under which the exercisable percentage is set at 10%, 50% or 100% depending on the EBITDA level for the fiscal year ending March 2019.