Executive compensation more closely linked to company performance
First written in FY2017. 5 of 7 entries say "Advanced", first in FY2018. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 117 companies on the "Worse" side.
72 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「To encourage the exercise of an entrepreneurial spirit aimed at improving corporate value and achieving performance targets over the medium to long term, the company deliberated on and introduced restricted stock units (RSUs) from fiscal 2025.」
The company has progressed from considering the introduction of medium- to long-term performance-linked compensation to introducing RSUs in fiscal 2025. The number of points granted annually to eligible directors is limited to 35,000 points. - FY2024Continued consideration of introducing medium- to long-term performance-linked compensationAnnual report
「During the fiscal year, the company deliberated on various forms and payment methods for share-based compensation and the effects expected from it as an incentive, as part of its consideration of introducing medium- to long-term performance-linked compensation. With the aim of introducing such compensation in the future, the committee will continue its deliberations.」
In addition to operating short-term performance-linked compensation, the company remains at the stage of continuing to consider introducing medium- to long-term share-based compensation. - FY2023AdvancedAnnual report
「The payment rate for annual performance-linked compensation varies according to the degree of achievement of group-wide performance targets, performance targets in the businesses overseen by each executive, and the expected roles assigned to each individual. The payment amount is determined following deliberation and approval by the Group Nomination and Compensation Committee.」
The calculation method for performance-linked compensation has been specified to reflect the achievement of group performance targets, the performance of the businesses overseen by each executive, and the achievement of individual roles. The compensation is determined by the Nomination and Compensation Committee, a majority of whose members are outside directors. - FY2021AdvancedAnnual report
「Annual performance-linked compensation is determined based on performance against the business plan and the rate of growth from the previous year, up to a maximum of 30% of fixed compensation. Compensation for achieving individual targets is determined based on the degree to which each individual's targets are achieved, up to a maximum of 10% of fixed compensation.」
The calculation method has been specified for performance-linked compensation and individual target-achievement compensation, with maximum ratios to fixed compensation of 30% and 10%, respectively. - FY2019AdvancedAnnual report
「The specific performance indicators forming the basis for calculating performance-linked compensation will be approved by the Board of Directors, with implementation planned from the fiscal year ending March 2020.」
The company has stated a policy of approving specific performance indicators for company-performance-linked compensation by the Board of Directors and introducing the system from the fiscal year ending March 2020. - FY2018AdvancedAnnual report
「The policy uses the highest employee salary multiplied by the compensation ratio for each position as the base amount, and reflects company performance in that amount. The policy is deliberated by the Nomination and Compensation Committee and decided by the Board of Directors.」
In addition to the policy for company-performance-linked compensation, the procedures have been specified, including deliberation by the Nomination and Compensation Committee and a decision by the Board of Directors. - FY2017First statedAnnual report
「Our policy regarding the amount of executive compensation and the method of determining it is based on a compensation structure that is more closely linked to company performance.」
For executive compensation, a policy based on employee salaries as the starting point and reflecting company performance has been identified as a theme for the first time.