Determination of Executive Compensation Based on the Board Skills Matrix
First written in FY2021. 2 of 5 entries say "Advanced", first in FY2022. Latest entry: FY2025.
The whole theme swung hardest in 2019: 2 of 12 companies on the "Worse" side.
9 other companies' latest entry also says "Advanced".
- FY2025AdvancedAnnual report
「Specifically, the company has set an ordinary profit margin of 8% as an important management indicator, and determines compensation based on this benchmark while considering trends in the ordinary profit margin and year-on-year changes. The ordinary profit margin for the previous fiscal year, which serves as the indicator for performance-linked compensation for the current fiscal year, was 3.3%, and because the payment requirements were not met, no performance-linked compensation was paid.」
The company disclosed that the previous fiscal year's ordinary profit margin of 3.3% did not meet the payment requirements for performance-linked compensation based on an ordinary profit margin of 8%, and that no performance-linked compensation was paid for the current fiscal year. - FY2024RestatedAnnual report
「In addition, the ability to perform one's duties and results achieved through the previous year are objectively evaluated using the director skills matrix. The president drafts the compensation proposal in accordance with the executive compensation regulations, which took effect on 1 March 2021, and compensation is determined by resolution of the Board of Directors following a recommendation from the Compensation Committee, based on the executive's role, responsibilities and position.」
The company has reconfirmed the process for determining compensation based on the skills matrix, executive compensation regulations, the Compensation Committee and a resolution of the Board of Directors. - FY2023RestatedAnnual report
「In addition, the ability to perform one's duties and results achieved through the previous year are objectively evaluated using the director skills matrix. The president drafts the compensation proposal in accordance with the executive compensation regulations, which took effect on 1 March 2021, and compensation is determined by resolution of the Board of Directors following a recommendation from the Compensation Committee, based on the executive's role, responsibilities and position.」
The company has reconfirmed the process for determining compensation based on the skills matrix, executive compensation regulations, the Compensation Committee's recommendation and a resolution of the Board of Directors. - FY2022AdvancedAnnual report
「Individual compensation consists of fixed compensation, comprising base compensation paid monthly, and performance-linked compensation, comprising bonuses that vary according to performance. Base compensation is set at a level that takes economic conditions and the company's growth potential into account, and is determined according to the executive's role. Performance-linked compensation consists of bonuses linked to annual performance and the degree of target achievement as short-term performance-linked compensation, and is determined according to the compensation mix ratio set for each role.」
In addition to the previous skills-matrix evaluation, the company has specified the composition of fixed and performance-linked compensation, the link to annual performance and target achievement, and determination by the Board of Directors following a recommendation from the Compensation Committee. - FY2021First statedAnnual report
「Individual compensation is objectively evaluated using the director skills matrix based on the ability to perform one's duties and results achieved through the previous year, and is determined in accordance with the executive compensation regulations, which took effect on 1 March 2021.」
The company has for the first time explicitly described a process under which individual executive compensation is evaluated using the director skills matrix based on the ability to perform one's duties and results achieved in prior years, and determined in accordance with the executive compensation regulations that took effect on 1 March 2021.