Performance-Linked Stock Compensation Tied to Ordinary Profit Target
First written in FY2021. 4 of 9 entries say "Advanced", first in FY2024-Q3. Latest entry: FY2026-H1.
The whole theme swung hardest in 2020: 4 of 31 companies on the "Worse" side.
24 other companies' latest entry also says "Advanced".
- FY2026-H1AdvancedAnnual report
「Series 12 Stock Acquisition Rights Resolution date 27 November 2025 Number of stock acquisition rights (units)* 1,039 Class, details and number of shares underlying the stock acquisition rights (shares)* Common shares 103,900 Exercise period for stock acquisition rights* From 28 November 2027 to 27 November 2029」
Under the restructured share incentive plan, 1,039 Series 12 stock acquisition rights representing 103,900 underlying shares were issued, with an exercise period from November 2027 through November 2029. - FY2025ReframedAnnual report
「Pursuant to a resolution of the Company’s Board of Directors in November 2024, the policy for determining the details of directors’ compensation and other remuneration was changed, and the post-performance-grant performance-linked share-based compensation plan was discontinued.」
The former post-performance-grant performance-linked share-based compensation plan has been discontinued, and the plan has been restructured to present a new stock option compensation plan as an agenda item for the shareholders’ meeting after the filing date. - FY2025-H1AdvancedAnnual report
「The issuance of new shares under the post-performance-grant performance-linked share-based compensation plan increased the total number of issued shares by 3,800, while capital stock and capital surplus each increased by ¥1.478 million as a result.」
Under the performance-linked share-based compensation plan, 3,800 new shares were issued to 5 directors and 5 executive officers on 23 December 2024. - FY2024AdvancedAnnual report
「The target and actual results for the performance indicators related to performance-linked compensation for the fiscal year were as follows.」
Against an ordinary profit target of ¥50 million, the actual result was ¥113.242 million, representing an achievement rate of 226.5% and exceeding the annual target for performance-linked compensation. In addition, Series 11 stock acquisition rights were issued subject to operating profit exceeding ¥100 million in each fiscal year from the fiscal year ending August 2025 through the fiscal year ending August 2027. - FY2024-Q3AdvancedAnnual report
「The share acquisition rights issued during the three-month period ended in the third quarter are as follows.」
On 1 May 2024, 850 Series 11 stock acquisition rights were issued, representing 85,000 underlying shares. Operating profit exceeding ¥100 million in each fiscal year from the fiscal year ending August 2025 through the fiscal year ending August 2027 is an exercise condition, marking the progression of the former performance-linked incentive plan to the issuance stage. - FY2024-Q2ReframedAnnual report
「As stated in “II. Terms and Conditions for the Issuance of Stock Acquisition Rights, 3. Details of Stock Acquisition Rights, (6) Conditions for Exercising Stock Acquisition Rights,” one of the exercise conditions for these stock acquisition rights is that operating profit must exceed ¥100 million in each of the 3 fiscal years from the fiscal year ending August 2025 through the fiscal year ending August 2027.」
The performance-linked share incentive plan has evolved from the previously disclosed ordinary profit threshold of ¥50 million to a structure using paid stock acquisition rights, with operating profit exceeding ¥100 million in each fiscal year from the fiscal year ending August 2025 through the fiscal year ending August 2027 as a condition. - FY2023Performance target not achieved; achievement rate 56.5%Annual report
「The target and actual results for the performance indicators related to performance-linked compensation for the fiscal year were as follows.」
Against an ordinary profit target of ¥50 million, the actual result was ¥28.227 million, representing an achievement rate of 56.5%; the payout rate for performance-linked share-based compensation was 0%. - FY2022Performance target not achieved; payout rate 0%Annual report
「The performance evaluation period is the fiscal year from 1 September 2022 to 31 August 2023. The payout rate is 0% if the performance target is not achieved and 100% if ordinary profit exceeds ¥50 million. Ordinary profit for the fiscal year was an ordinary loss of ¥1,291.273 million.」
The plan continues to use ordinary profit exceeding ¥50 million as the threshold for a 100% payout, but the fiscal year result was an ordinary loss of ¥1,291.273 million, leaving the target unmet. - FY2021First statedAnnual report
「The purpose of this plan is to provide the Company’s directors, excluding outside directors, with an incentive to enhance corporate value and to further align their interests with those of shareholders. Under the plan, the Company’s Board of Directors sets numerical performance targets in advance for a period determined by the Board, and grants eligible directors a number of the Company’s common shares and cash, calculated according to the percentage of achievement against those targets, as compensation and other remuneration. It is a performance-linked compensation plan.」
The plan uses the period from 1 September 2021 to 31 August 2022 as the performance evaluation period, with a 100% payout rate if ordinary profit exceeds ¥50 million and 0% if the target is not achieved. The annual limits are ¥240 million and 15,000 shares.