Performance-Linked Compensation Based on Ordinary Profit
First written in FY2019. 1 of 7 entries say "Softened", first in FY2020. Latest entry: FY2026.
KENKO Mayonnaise moved to the "Worse" side of this theme in 2026, 2 years after 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".
- FY2026ReframedAnnual report
「(i) The performance metric used for evaluation shall be profit attributable to owners of the parent at the end of the fiscal period, in order to increase awareness of improving performance (hereinafter, “period-end performance”).」
The performance-linked compensation metric was reorganized from the previous focus on ordinary profit to profit attributable to owners of the parent for the 69th fiscal period, with a method introduced for increasing or decreasing the number of months of fixed compensation based on the ratio to the earnings forecast. - FY2024AdvancedAnnual report
「The Nomination and Compensation Committee calculates performance-linked compensation based on the achievement rate against targets for consolidated operating profit, consolidated ordinary profit, profit before income taxes and other adjustments, consolidated ROE, consolidated ROIC and other metrics for each fiscal year, reports the result to the Board of Directors, and pays this amount.」
The performance-linked compensation system was continued, with the metrics expanded to include consolidated operating profit, ordinary profit, profit before tax, ROE and ROIC. Performance-linked compensation of ¥35 million was paid to directors other than outside directors. - FY2023Performance-linked compensation system continued, but no payment was made for the fiscal yearAnnual report
「The Nomination and Compensation Committee calculates performance-linked compensation based on the achievement rate against targets for consolidated operating profit, consolidated ordinary profit, consolidated profit before tax, consolidated ROE, consolidated ROIC and other metrics for each fiscal year, and reports the result to the Board of Directors.」
The performance-linked compensation system and performance metrics have continued, but the executive compensation results table shows performance-linked compensation of ¥0 million for the fiscal year. - FY2022Reintroduction of performance-linked compensationAnnual report
「“Method for Calculating Performance-Linked Compensation for the 65th Fiscal Period” (i) The performance metric used for evaluation shall be consolidated ordinary profit at the end of the fiscal period, in order to increase awareness of improving performance. (ii) Performance-linked compensation shall be paid when actual consolidated ordinary profit exceeds the publicly disclosed figure.」
For the 65th fiscal period, the company described the calculation method and payment conditions for performance-linked compensation based on consolidated ordinary profit, which it had stated was not introduced in the previous fiscal year, and recorded performance-linked compensation of ¥23 million. - FY2021DroppedAnnual report
「Compensation for the fiscal year was fixed compensation; no performance-linked or non-monetary compensation was introduced.」
The company changed from setting a target for performance-linked compensation based on ordinary profit to fixed compensation without performance-linked compensation for the fiscal year. - FY2020SoftenedAnnual report
「Ordinary profit was used as the performance-linked compensation metric for fiscal 2020 because it was designated as an important indicator for evaluating company performance, but the target amount was left undecided because it could not yet be reasonably estimated; it will be set once a reasonable estimate becomes possible. In fiscal 2019, actual ordinary profit was ¥3,003 million against a target of ¥3,300 million.」
Ordinary profit was used as the performance-linked compensation metric for fiscal 2020, but the target was left undecided until a reasonable estimate could be made. Fiscal 2019 actual ordinary profit was ¥3,003 million, below the ¥3,300 million target. - FY2019First statedAnnual report
「Because ordinary profit was designated as an important indicator for evaluating company performance, it was used as the performance-linked compensation metric for fiscal 2019, with a target of ¥3,300 million. In fiscal 2018, the target was ¥3,000 million and actual ordinary profit was ¥3,145 million.」
Ordinary profit was used as the performance-linked compensation metric, and the target for fiscal 2019 was set at ¥3,300 million.