Performance-linked compensation and sharing value with shareholders
First written in FY2019. 2 of 5 entries say "Advanced", first in FY2024. Latest entry: FY2026.
Kyowa Leather Cloth moved to the "Worse" side of this theme in 2026, 1 year after the typical company in this theme (2025).
The whole theme swung hardest in 2024: 13 of 117 companies on the "Worse" side.
3 other companies' latest entry also says "Softened".
- FY2026SoftenedAnnual report
「Performance-linked compensation for each executive was calculated based on consolidated operating income of ¥920 million for the fiscal year ending March 2026 and ¥2,140 million for the fiscal year ended March 2025. The company has submitted to the 128th Annual General Meeting of Shareholders, to be held on 19 June 2026, a resolution item titled “Payment of executive bonuses,” proposing ¥34 million for directors and ¥6 million for audit & supervisory board members.」
Reflecting the decline in consolidated operating income, the proposed executive bonus payments were ¥34 million for directors and ¥6 million for audit & supervisory board members. The proposed amount for directors decreased from ¥38 million submitted in the previous fiscal year. - FY2025AdvancedAnnual report
「Performance-linked compensation, or executive bonuses, is structured so that the amount paid varies according to the year-on-year change in consolidated operating income in the previous fiscal year, in accordance with the bonus guidelines, with the aim of providing appropriate incentives for sustainable improvement in business performance. The performance-linked compensation for each executive was calculated based on consolidated operating income of ¥2,140 million for the fiscal year ended March 2025 and ¥2,567 million for the fiscal year ended March 2024. The company has submitted to the 127th Annual General Meeting of Shareholders, held on 19 June 2025, a resolution item titled “Payment of executive bonuses,” proposing ¥38 million for directors and ¥6 million for audit & supervisory board members.」
Regarding compensation linked to the year-on-year change in consolidated operating income, the company submitted a proposal to pay ¥38 million to directors and ¥6 million to audit & supervisory board members, based on operating income for the current and previous fiscal years. - FY2024AdvancedAnnual report
「Performance-linked compensation, or executive bonuses, is structured so that the amount paid varies according to the year-on-year change in consolidated operating income in the previous fiscal year, in accordance with the bonus guidelines, with the aim of providing appropriate incentives for sustainable improvement in business performance. The performance-linked compensation for each executive was calculated based on consolidated operating income of ¥2,567 million for the fiscal year ended March 2024 and ¥237 million for the fiscal year ended March 2023. At the 126th Annual General Meeting of Shareholders held on 20 June 2024, it was resolved that ¥37 million would be paid to directors and ¥6 million to audit & supervisory board members under Proposal 5, “Payment of executive bonuses.”」
Regarding compensation linked to the year-on-year change in consolidated operating income, the company resolved to pay ¥37 million to directors and ¥6 million to audit & supervisory board members, based on operating income for the fiscal years ended March 2024 and March 2023. - FY2020RestatedAnnual report
「Performance-linked compensation, or executive bonuses, is structured so that the amount paid varies according to the year-on-year change in operating income in the previous fiscal year, in accordance with the bonus guidelines, with the aim of providing appropriate incentives for sustainable improvement in business performance.」
The company continues to maintain a compensation policy centered on executive bonuses linked to the year-on-year change in operating income and on sharing value with shareholders and improving corporate value over the medium to long term. - FY2019First statedAnnual report
「Our executive compensation system has been established to strengthen its linkage to business performance and share value with shareholders. Our basic policy is to develop a compensation structure that promotes sustainable growth and increases corporate value over the medium to long term, taking into account compensation levels at other companies and other factors. Executive bonuses, hereafter referred to as performance-linked compensation, are structured so that the amount paid varies according to the year-on-year change in operating income in the previous fiscal year, with the aim of providing appropriate incentives for sustainable improvement in business performance.」
The company describes its basic policy on executive compensation as sharing value with shareholders and promoting sustainable growth, together with a performance-linked compensation structure in which the amount paid varies according to the year-on-year change in operating income in the previous fiscal year.