Executive Compensation System Linked to Consolidated Ordinary Profit
First written in FY2017. 5 of 10 entries say "Advanced", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
16 other companies' latest entry also says "Raised".
- FY2026RaisedAnnual report
「From fiscal 2026, with the aim of increasing executives' motivation to achieve results, and after comparing and validating levels against external benchmarks, we will change the composition of target total compensation from the previous ratio of 60:25:15 for base compensation, performance-linked compensation, and stock-based compensation to 55:30:15.」
The company has increased the proportion of performance-linked compensation in executive compensation from 25% to 30% and expanded the calculation method to include individual and non-financial evaluations. - 2026-05-27AdvancedGeneral Meetings of Shareholders
「Performance-linked compensation consists of performance-linked bonuses, performance-based additional bonuses and non-financial evaluation bonuses, and is calculated based on the performance-linked compensation formula described below.」
The company specifically discloses a calculation formula and payment conditions for executive compensation using consolidated ordinary profit, individual evaluations, GHG emissions, the percentage of women in management and employee engagement. - FY2026-H1AdvancedAnnual report
「Of this, performance-linked compensation consists of a performance-linked bonus, an additional performance bonus, and a non-financial evaluation bonus, calculated based on the performance-linked compensation formula described below.」
The company determined its executive compensation standards for fiscal 2025 and specified a three-part calculation formula, position-based multipliers, and payment conditions covering performance-linked bonuses funded by consolidated ordinary profit, as well as individual and non-financial evaluation components. - FY2025AdvancedAnnual report
「For the non-financial (ESG) evaluation introduced from fiscal 2024, the company uses the following 3 metrics from among its materiality initiatives, which have high strategic priority: (1) greenhouse gas emissions, (2) the percentage of women in management positions, and (3) the employee engagement survey score.」
The company has operated the ESG evaluation introduced into its executive compensation system from fiscal 2024, using GHG emissions, the percentage of women in management positions, and employee engagement as metrics for non-financial evaluation bonuses. - FY2024ReframedAnnual report
「In conjunction with the launch of Medium-Term Management Plan 2026 in fiscal 2024, we revised our executive compensation standards. The revision includes the introduction of non-financial (ESG) metrics into performance-based compensation.」
From fiscal 2024, the company introduced non-financial (ESG) metrics into its executive compensation system, adding greenhouse gas emissions, the percentage of women in management positions, and the employee engagement survey score as evaluation criteria. - FY2023RestatedAnnual report
「For the current consolidated fiscal year, the payment amount will be calculated using consolidated ordinary profit of ¥26,044 million.」
The company continues to use performance-linked compensation based on consolidated ordinary profit as a metric, with the composition ratio of base compensation, performance-linked compensation, and stock-based compensation remaining approximately 60:25:15. - FY2022AdvancedAnnual report
「For the current consolidated fiscal year, the payment amount will be calculated using consolidated ordinary profit of ¥28,596 million. The payment ratio within target total compensation is approximately 60:25:15 for base compensation, performance-linked compensation, and stock-based compensation, respectively.」
The company provides specific disclosure on the calculation of performance-linked compensation based on consolidated ordinary profit of ¥28,596 million and the composition ratios of base compensation, performance-linked compensation, and stock-based compensation. - FY2020AdvancedAnnual report
「As stated below under the performance-linked bonus calculation method, the short-term performance-linked bonus is calculated using consolidated ordinary profit as the metric, multiplied by 0.01% and the position-based multiplier. The payment amount is automatically determined according to consolidated ordinary profit. For the current consolidated fiscal year, the payment amount will be calculated using consolidated ordinary profit of ¥19,534 million.」
The company provides specific details of the performance-linked bonus calculation based on consolidated ordinary profit of ¥19,534 million and the compensation structure consisting of base compensation, performance-linked bonuses, and restricted stock. - FY2018ReframedAnnual report
「Calculation formula: Consolidated ordinary profit × 0.01% × position-based multiplier」
The company presents a position-based multiplier formula for performance-linked compensation and adds conditions of a ¥30 billion cap on consolidated ordinary profit, no payment below ¥5 billion, and a maximum payment of ¥150 million. It also introduced a restricted stock compensation plan in fiscal 2018. - FY2017First statedAnnual report
「Calculation formula: Consolidated ordinary profit × 0.01% × profit multiplier × position-based multiplier」
The company has, for the first time, specifically disclosed the method for calculating performance-linked compensation, which is based on consolidated ordinary profit multiplied by a profit multiplier and a position-based multiplier.