Performance-Linked Executive Compensation Using Consolidated Net Sales and Consolidated Operating Income as Evaluation Metrics
First written in FY2019. 5 of 6 entries say "Reframed", first in FY2020. Latest entry: FY2026.
Morinaga Milk Industry moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2020: 5 of 25 companies on the "Worse" side.
2 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「By resolution of the Board of Directors dated 13 May 2025, the Company changed the performance indicators for performance-linked cash compensation and share-based compensation for directors, excluding outside directors, as follows.」
The performance indicators for performance-linked cash compensation were changed to place greater emphasis on profitability, capital efficiency, and the growth strategy, while TSR was introduced for share-based compensation in addition to FTSE and MSCI. - FY2024ReframedAnnual report
「Achievement against targets for the Group's overall performance—consolidated revenue 40%, consolidated operating income 40%, and ROE 20%—is used as the performance indicator. The payment amount is calculated by multiplying the standard amount by a coefficient based on the level of achievement, which varies within a range of ±35% when target achievement is 100%.」
For performance-linked compensation, the Company incorporated ROE as a performance indicator, resulting in a weighting of 40% for consolidated revenue, 40% for operating income, and 20% for ROE. From July 2024, the system was changed so that contributions to the Sustainability Long-Term Plan 2030 are also directly reflected. - FY2020ReframedAnnual report
「To achieve sustainable growth and expand the Group's business foundation, performance-linked compensation is determined by the personnel and compensation committee based on achievement against targets for the Group's overall performance—consolidated revenue, consolidated operating income, and ROE—taking into account each director's individual performance evaluation and other factors.」
The Company added ROE as a performance indicator for performance-linked compensation and revised the system so that decisions are made by the personnel and compensation committee rather than the Representative Director. - FY2019First statedAnnual report
「To achieve sustainable growth and expand the Group's business foundation, performance-linked compensation is determined by the Representative Director based on achievement against targets for the Group's overall performance, namely consolidated revenue and consolidated operating income.」
The Company states that achievement against targets for consolidated revenue and consolidated operating income will be used as performance indicators for directors' performance-linked compensation.