Considering the Introduction of a Performance-Linked, Highly Transparent Executive Compensation Structure
First written in FY2021. 2 of 4 entries say "Advanced", first in FY2023. Latest entry: FY2025.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
34 other companies' latest entry also says "Other".
- FY2025Lower performance-linked compensation paymentsAnnual report
「The performance indicator for performance-linked compensation is consolidated operating profit, which was ¥1,306 million for the current fiscal year.」
The Company continued to operate its performance-linked compensation system through the Nomination and Compensation Committee and recognized ¥16 million in performance-linked compensation during the current fiscal year. The payment declined from ¥43 million in the previous fiscal year. - FY2024AdvancedAnnual report
「Director compensation will comprise an appropriate mix of fixed and performance-linked compensation to provide appropriate compensation levels based on the position, responsibilities and performance of each executive director. “The performance indicator for performance-linked compensation is consolidated operating profit, which was ¥1,299 million for the current fiscal year.”」
The Company operated a fixed and performance-linked compensation structure through the Nomination and Compensation Committee and recognized ¥43 million in performance-linked compensation based on consolidated operating profit. - FY2023AdvancedAnnual report
「At a meeting of the Board of Directors held on 30 March 2022, the Company resolved the following policy for determining individual director compensation: “To make the process for determining director compensation more objective and transparent, a Nomination and Compensation Committee will be established as an advisory body to the Board of Directors. A majority of the committee members will be independent outside directors.”」
The Company established the Nomination and Compensation Committee on 30 March 2022 and resolved a compensation policy comprising fixed and performance-linked compensation. Performance-linked compensation based on consolidated operating profit was not paid because actual results for the current fiscal year did not reach the payment threshold. - FY2021First statedAnnual report
「The Company will closely monitor the intent of the Corporate Governance Code, developments concerning its revisions and trends among listed companies, and will begin considering whether to introduce a more performance-linked and highly transparent compensation structure. The Company will work to apply the structure to directors elected at the Annual General Meeting of Shareholders in June 2022.」
The Company has begun considering an executive compensation structure with greater performance linkage and transparency, and has stated for the first time its policy of aiming to apply it to directors following the Annual General Meeting of Shareholders in June 2022.