Performance-linked calculation of executive bonuses
First written in FY2020. 1 of 3 entries say "Reframed", first in FY2022. Latest entry: FY2022.
PAL GROUP Holdings moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
13 other companies' latest entry also says "Reframed".
- FY2022ReframedAnnual report
「Executive bonuses are linked to the previous fiscal year's performance. The total bonus pool is calculated by multiplying consolidated net income by a coefficient determined according to the consolidated ordinary profit margin after certain adjustments in accordance with internal rules. The amount payable to each executive is then calculated according to their contribution and performance, also in accordance with internal rules.」
After applying an exception in the previous fiscal year due to COVID-19, the company described the standard performance-linked calculation method for the current fiscal year, based on the consolidated ordinary profit margin and consolidated net income. - FY2021Exception to the remuneration calculation rules due to COVID-19Annual report
「As current-period results were affected by store closures and other factors resulting from the spread of COVID-19, the Nomination and Compensation Committee determined that the provision in the internal rules stating that the rules do not apply in cases involving special circumstances should be applied. It decided that base remuneration would be set at the same amounts as in the previous fiscal year and that a uniform bonus amount would be paid to all directors other than outside directors. This was reported to the Board of Directors and the Audit & Supervisory Board.」
In response to the impact of the infectious disease on results, the exception clause in the internal rules was applied instead of the previous calculation method linked to the consolidated ordinary profit margin and net income. Base remuneration was set at the same level as in the previous fiscal year, and bonuses were set at a uniform amount. - FY2020First statedAnnual report
「Executive bonuses are performance-linked. The total bonus pool is calculated by multiplying consolidated net income by a coefficient determined according to the consolidated ordinary profit margin after certain adjustments in accordance with internal rules. The amount payable to each executive is then calculated according to their contribution and performance, also in accordance with internal rules.」
The performance-linked calculation method for executive bonuses, using the consolidated ordinary profit margin and consolidated net income, was recorded as a new item for tracking.