Executive Incentives Based on Performance-Linked Compensation and KPIs
First written in FY2019. 3 of 9 entries say "Reframed", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2020: 4 of 31 companies on the "Worse" side.
24 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Revenue 30% ¥2.0898 trillion ¥2.0363 trillion 97.4% Adjusted EBITDA 30% ¥503 billion ¥496.6 billion 98.7% Adjusted EPS 20% ¥26.0 ¥28.7 110.4%」
For the fiscal year ending March 2026, executive performance is evaluated using revenue, adjusted EBITDA, and adjusted EPS. EPS achieved 110.4% of the target, while revenue and adjusted EBITDA achieved 97.4% and 98.7%, respectively. - 2026-05-28ReframedGeneral Meetings of Shareholders
「The purpose of this plan, namely, “to enhance the motivation to contribute to the improvement of the Company’s medium- to long-term shareholder value and corporate value, retain outstanding management talent, and further strengthen the sense of shared interests with shareholders by promoting ownership of the Company’s shares,” applies equally not only to executive directors, who are currently eligible for the plan, but also to directors other than directors who are Audit and Supervisory Committee members.」
The Company proposed revising the RSU plan to expand eligibility from executive directors to directors who are not Audit and Supervisory Committee members. - FY2025AdvancedAnnual report
「Revenue (30%) ¥1.935 trillion ¥1.9174 trillion 99.1% Adjusted EBITDA (30%) ¥430 billion ¥470.8 billion 109.5% Adjusted EPS (20%) ¥14.3 ¥19.6 137.1%」
For the fiscal year ended March 2025, executive performance was evaluated using revenue, adjusted EBITDA, and adjusted EPS. Actual performance was 99.1% of the revenue target, 109.5% for adjusted EBITDA, and 137.1% for adjusted EPS. - FY2024AdvancedAnnual report
「* The Nomination and Compensation Committee resolved that the breakdown of the KPIs for consolidated performance evaluation for March 2024 would be as follows: revenue (20%), adjusted EBITDA (40%), adjusted EPS (20%).」
The Company specified the KPIs for executive performance-linked compensation as revenue, adjusted EBITDA, and adjusted EPS, and additionally incorporated a sustainability assessment within a range of ±5%. - FY2023ReframedAnnual report
「The reason for selecting these performance indicators is that revenue, adjusted EBITDA, advertising revenue, and e-commerce transaction value are KPIs that the Company considers important in its management strategy as measures of the achievement of consolidated performance. In addition, sustainability assessments, including the level of achievement of social contributions, were selected to foster management awareness that contributes to enhancing corporate value from a non-financial perspective, while qualitative assessments, including the degree to which each director achieves their mission, were selected to clarify individual director performance.」
The Company reorganised the evaluation criteria for executive performance-linked compensation from the previous explanation centred on operating profit and EBITDA to a combination of revenue, adjusted EBITDA, advertising revenue, e-commerce transaction value, sustainability assessments, and qualitative assessments. - FY2022AchievedAnnual report
「The target for adjusted EBITDA, the primary indicator for performance-linked compensation in the current fiscal year, was a minimum threshold of ¥313 billion. Following an upward revision to the earnings forecast during the fiscal year, the Company aimed for at least ¥330 billion, and actual adjusted EBITDA was ¥331.4 billion.」
Actual adjusted EBITDA was ¥331.4 billion against a minimum target of ¥313 billion and a target of at least ¥330 billion following the upward revision. - FY2021ReframedAnnual report
「The target for consolidated operating profit, the primary indicator for performance-linked compensation in the current fiscal year, was at least ¥160 billion, and actual consolidated operating profit was ¥162.1 billion. In addition, EBITDA was adopted as the primary indicator instead of consolidated operating profit for the fiscal year ending March 2022.」
For the fiscal year ended March 2021, actual operating profit was ¥162.1 billion against a target of at least ¥160 billion. From the fiscal year ending March 2022, the primary indicator for performance-linked compensation changed from operating profit to EBITDA. - FY2020AchievedAnnual report
「The target for consolidated operating profit, the primary indicator for performance-linked compensation in the current fiscal year, was at least ¥140 billion, and actual consolidated operating profit was ¥152.2 billion.」
For performance-linked compensation for the fiscal year ended March 2020, actual operating profit was ¥152.2 billion against a target of at least ¥140 billion, exceeding the primary target for the fiscal year. - FY2019First statedAnnual report
「In determining the amount of performance-linked compensation, the Compensation Committee deliberates and passes resolutions after comprehensively considering operating profit as the primary indicator, the degree of contribution to various KPIs, and the changes in these indicators from the previous fiscal year. The target for operating profit, the primary indicator for performance-linked compensation in the current fiscal year, was at least ¥140 billion, and actual operating profit was ¥140.5 billion.」
The Company disclosed a mechanism for determining executive performance-linked compensation by combining operating profit as the primary indicator with multiple KPIs, year-on-year performance, and negative assessments when risks arise. For the fiscal year ended March 2019, the operating profit target was at least ¥140 billion and actual operating profit was ¥140.5 billion.