Consolidated Operating Profit-Linked Performance-Based Compensation
First written in FY2021. 1 of 3 entries say "Advanced", first in FY2023. Latest entry: FY2024.
Denka moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2018: 3 of 7 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2024ReframedAnnual report
「However, compensation may be withheld or reduced if consolidated operating profit falls below a specified amount, a substantial extraordinary loss is incurred, or a serious compliance violation occurs, among other cases.」
The policy for performance-linked compensation was changed to include substantial extraordinary losses and serious compliance violations, in addition to consolidated operating profit, as conditions for withholding or reducing payment. The policy has applied since April 2024. - FY2023AdvancedAnnual report
「Performance-linked compensation consists of company-wide performance-linked compensation and individual performance-linked compensation. The total amount of company-wide performance-linked compensation is determined in line with consolidated operating profit, a key target figure in the Company’s management plan, while individual performance-linked compensation is linked to each director’s individual assessment of achievement of financial and non-financial targets, among other factors,」
In addition to compensation linked to consolidated operating profit, individual performance-linked compensation linked to each director’s achievement of financial and non-financial targets was introduced. The compensation mix was also revised to 60% base compensation, 30% performance-linked compensation and 10% stock-based compensation. - FY2021First statedAnnual report
「Performance-linked compensation is determined by setting the total amount payable in line with consolidated operating profit, a key target figure in the Company’s management plan, allocated according to each director’s role and responsibilities, and paid promptly after the financial results are finalised.」
The disclosure describes a system under which the total amount of performance-linked compensation for directors is determined in line with consolidated operating profit, a key target figure in the management plan.