Long-Term Performance Targets Linked to Performance-Based Compensation
First written in FY2019. 2 of 5 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2020: 5 of 25 companies on the "Worse" side.
15 other companies' latest entry also says "Other".
- FY2025Operating profit target missed; no performance-based compensationAnnual report
「As operating profit for the current fiscal year was ¥123.640 million, no performance-based compensation applies to the current fiscal year.」
Operating profit was below the ¥500 million first-stage long-term performance target, so no performance-based compensation arose for the current fiscal year. - FY2023RestatedAnnual report
「The long-term performance targets are set in 4 levels based on the achievement of operating profit targets. I. Achievement of operating profit of ¥500 million II. Achievement of operating profit of ¥800 million III. Achievement of operating profit of ¥1.1 billion IV. Achievement of operating profit of ¥1.5 billion」
It reiterates the 4-level long-term performance targets consolidated into operating profit, with revenue removed. - FY2021ReframedAnnual report
「The long-term performance targets are set in 4 levels based on the achievement of operating profit targets. I. Achievement of operating profit of ¥500 million II. Achievement of operating profit of ¥800 million III. Achievement of operating profit of ¥1.1 billion IV. Achievement of operating profit of ¥1.5 billion (Note) 1. At the 13th Annual General Meeting of Shareholders held on 22 December 2021, a resolution was passed to change the long-term performance targets, which are metrics for performance-based compensation. Under this resolution, revenue, which is affected by the application of the revenue recognition standard, was removed from the long-term performance targets, and the targets were consolidated into operating profit targets, which have a stronger link to the share price. The operating profit targets were also revised to metrics incorporated into the medium-term management plan.」
It discloses a change from the previous 4-level revenue and operating profit targets to targets consolidated into operating profit of ¥500 million, ¥800 million, ¥1.1 billion and ¥1.5 billion, with revenue removed. - FY2020RestatedAnnual report
「The long-term performance targets are set in 4 levels based on the achievement of revenue and operating profit targets. I. Achievement of revenue of ¥5 billion and operating profit of ¥1 billion II. Achievement of revenue of ¥10 billion and operating profit of ¥2 billion III. Achievement of revenue of ¥15 billion and operating profit of ¥3 billion IV. Achievement of revenue of ¥20 billion and operating profit of ¥4 billion」
It reiterates the 4 levels of long-term revenue and operating profit targets linked to performance-based compensation. - FY2019First statedAnnual report
「The metrics for performance-based compensation are set out in the long-term performance targets below. These metrics were selected to clarify the link between the Company's performance and share value as an incentive for the Company's sustainable growth, and to raise awareness of contributing to improved performance over the medium to long term and increased corporate value. The amount of performance-based compensation is determined according to the degree of achievement of the performance targets and other factors. The long-term performance targets are set in 4 levels based on the achievement of revenue and operating profit targets. I. Achievement of revenue of ¥5 billion and operating profit of ¥1 billion II. Achievement of revenue of ¥10 billion and operating profit of ¥2 billion III. Achievement of revenue of ¥15 billion and operating profit of ¥3 billion IV. Achievement of revenue of ¥20 billion and operating profit of ¥4 billion」
It newly discloses 4 levels of long-term performance targets for directors, ranging from revenue of ¥5 billion and operating profit of ¥1 billion to revenue of ¥20 billion and operating profit of ¥4 billion.