Profit-linked Compensation for Executive Directors Tied to Consolidated Operating Margin
First written in FY2017. 2 of 9 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2020: 4 of 31 companies on the "Worse" side.
0 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「For the fiscal year, the actual consolidated operating margin of 8.2% was below the 10.5% target for performance-based compensation.」
The actual operating margin was 8.2%, compared with a target of 10.5% for performance-based compensation. The threshold for applying the maximum coefficient in the following fiscal year is scheduled to be lowered from 13.0% or higher to 10.0% or higher. - 2026-07-29RestatedGeneral Meetings of Shareholders
「Performance-linked variable compensation is paid in cash and reflects performance indicators. To encourage awareness of improving the performance of the Group as a whole, consolidated operating margin for each fiscal year is used as the performance indicator, and the amount calculated according to the degree of achievement against the target is paid annually as directors’ bonuses at a specified time.」
The company continued its performance-linked compensation system using consolidated operating margin as the performance indicator. - FY2024RestatedAnnual report
「For the fiscal year, the actual consolidated operating margin of 12.3% was below the 12.8% target for performance-based compensation.」
The company continues to operate a performance-based compensation system under which fixed compensation is multiplied by a coefficient based on the consolidated operating margin. The actual margin was 12.3% against a 12.8% target for the fiscal year, but the coefficient tiers were unchanged. - FY2023RaisedAnnual report
「The calculation method based on the resolution of the Board of Directors meeting held on 22 August 2023 is as follows: operating margin of 15.0% or higher, 0.50; 14.0% or higher but less than 15.0%, 0.45; 13.0% or higher but less than 14.0%, 0.35; 12.0% or higher but less than 13.0%, 0.25; 11.0% or higher but less than 12.0%, 0.15; less than 11.0%, 0.10.」
The threshold for applying the maximum 0.50 performance-based compensation coefficient has been raised from the previous operating margin of 13% or higher to 15% or higher, and the benchmarks for each tier have been raised again. - FY2022Further raising of the operating-margin-linked coefficient thresholdsAnnual report
「The calculation method based on the resolution of the Board of Directors meeting held on 23 August 2022 is as follows: operating margin of 13.0% or higher, 0.50; 12.0% or higher but less than 13.0%, 0.45; 11.0% or higher but less than 12.0%, 0.35; 10.0% or higher but less than 11.0%, 0.25; 9.0% or higher but less than 10.0%, 0.15; less than 9.0%, 0.10.」
For performance-linked compensation, the operating-margin threshold for applying the maximum coefficient of 0.50 was raised from the previous level of 12% or higher to 13% or higher, and the thresholds at each level were also raised. - FY2021Raising of the operating-margin-linked coefficient thresholdsAnnual report
「Operating margin Coefficient applied 12.0% or higher 0.50 11.0% or higher but less than 12.0% 0.45 10.0% or higher but less than 11.0% 0.35 9.0% or higher but less than 10.0% 0.25 8.0% or higher but less than 9.0% 0.15 Less than 8.0% 0.10」
Under the coefficient table based on the resolution of the Board of Directors meeting held on 24 August 2021, the operating-margin threshold for applying the maximum coefficient of 0.50 was raised from 11% or higher to 12% or higher, and the thresholds at each level were also raised by 1 percentage point. - FY2020Lowering of the operating-margin-linked coefficient thresholdsAnnual report
「Operating margin of 11.0% or higher, 0.50; 10.0% or higher but less than 11.0%, 0.45; 9.0% or higher but less than 10.0%, 0.35; 8.0% or higher but less than 9.0%, 0.25; 7.0% or higher but less than 8.0%, 0.15; less than 7.0%, 0.10.」
The performance-linked compensation coefficient table was changed, lowering the operating-margin threshold for applying the maximum coefficient of 0.50 from 13% or higher to 11% or higher. - FY2018Change to the operating-margin-linked coefficient tableAnnual report
「The calculation method based on the resolution of the Board of Directors meeting held on 21 August 2018 is as follows: operating margin of 10.0% or higher, 0.50; 9.0% or higher but less than 10.0%, 0.45; 8.0% or higher but less than 9.0%, 0.35; 7.0% or higher but less than 8.0%, 0.25; 6.0% or higher but less than 7.0%, 0.15; less than 6.0%, 0.10.」
The company discloses the current calculation categories for profit-linked compensation based on the consolidated operating margin. - FY2017First statedAnnual report
「The amount is calculated by multiplying annual compensation by a coefficient based on the consolidated operating margin for the fiscal year. The amount paid is capped at an amount equivalent to 50% of the individual director's annual compensation.」
For profit-linked compensation for executive directors, the company discloses a calculation method using coefficients ranging from a consolidated operating margin of less than 4% to 8% or higher, with payments capped at an amount equivalent to 50% of each director's annual compensation.