Performance-Based Director Compensation Linked to Consolidated Operating Profit
First written in FY2021. 1 of 3 entries say "Reframed", first in FY2022. Latest entry: FY2023.
GiG Works moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2020: 5 of 26 companies on the "Worse" side.
4 other companies' latest entry also says "Softened".
- FY2023SoftenedAnnual report
「Consolidated operating profit for the current consolidated fiscal year was ¥111 million, while the loss attributable to owners of the parent was ¥718 million. Compared with the performance metrics of ¥500 million for consolidated operating profit and ¥260 million for profit attributable to owners of the parent, the achievement rate for profit attributable to owners of the parent was lower, so that metric was adopted. As the company recorded a loss attributable to owners of the parent for the current consolidated fiscal year, no performance-linked bonuses were paid.」
The performance metrics were changed from ¥1 billion of consolidated operating profit and ¥600 million of net profit in the previous fiscal year to ¥500 million and ¥260 million, respectively. No performance-linked bonuses were paid in the current fiscal year because the company recorded a net loss. - FY2022ReframedAnnual report
「The amount of performance-linked compensation (bonuses) is determined by considering the degree of achievement against consolidated operating profit and profit attributable to owners of the parent, the performance metrics, in order to heighten the sense of responsibility for and awareness of achieving performance targets. Consolidated operating profit for the current consolidated fiscal year was ¥442 million, and profit attributable to owners of the parent was ¥232 million, compared with performance metrics of ¥1 billion and ¥600 million, respectively. As the achievement rate for profit attributable to owners of the parent was lower than that for consolidated operating profit, the former metric was adopted. The achievement rate for profit attributable to owners of the parent was 38.8%, and bonuses were paid by applying this achievement level to the amount set in advance.」
The performance-linked compensation metrics were reorganised from the previous consolidated operating profit alone into 2 metrics, consolidated operating profit and profit attributable to owners of the parent. For the current fiscal year, the company used a 38.8% achievement rate for net profit. - FY2021First statedAnnual report
「Performance-linked compensation (bonuses) is determined by taking into account the degree of achievement against consolidated operating income, which serves as the performance indicator, with the aim of strengthening responsibility and awareness regarding the achievement of performance targets. Consolidated operating income for the fiscal year was ¥903 million, ¥297 million below the ¥1.2 billion performance indicator, and bonuses were paid by applying this achievement level to predetermined amounts.」
Discloses a system under which director performance-linked compensation is determined based on achievement against consolidated operating income; consolidated operating income was ¥903 million versus a ¥1.2 billion target.