Stock option compensation linked to performance targets and stock price
First written in FY2017. 9 of 12 entries say "Advanced", first in FY2018-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2020: 2 of 10 companies on the "Worse" side.
4 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The weightings assigned to each indicator and the payment rates corresponding to target achievement rates in calculating equity-settled stock options for the fiscal year ending March 2026 are as shown in the table below.」
For stock options, the Company disclosed weightings of 40% for consolidated net sales, 40% for operating income and 20% for net income, together with calculations based on the targets and actual results for the fiscal year ending March 2026. - FY2026-H1AdvancedAnnual report
「Number of stock acquisition rights: 793 (Note 1); class, details and number of underlying shares: common shares 79,300 (Note 1)」
As approved on 25 July 2025, 793 stock acquisition rights covering 79,300 underlying shares were granted to 75 employees. Under the allotment agreement, the exercise period was changed to 16 August 2027 to 15 August 2037, and achievement of individually established performance targets and other conditions is an exercise condition. - FY2025-H1AdvancedAnnual report
「Number of stock acquisition rights: 1,425 (Note 1); class, details and number of underlying shares: common shares 142,500 (Note 1)」
As approved on 26 June 2024, 1,425 stock acquisition rights covering 142,500 underlying shares were granted to 75 employees. A condition for determining the number that may be exercised according to the degree of achievement of individually established performance targets and other conditions is also described. - FY2024-Q2AdvancedAnnual report
「Number of stock acquisition rights: 2,496 (Note 1); class, details and number of underlying shares: common shares 249,600 (Note 1)」
As approved on 27 June 2023, 2,496 stock acquisition rights covering 249,600 underlying shares were granted to 87 employees. Under the allotment agreement, the exercise period was changed to 14 July 2027 to 13 July 2037, and achievement of individually established performance targets and other conditions is an exercise condition. - FY2023AdvancedAnnual report
「For equity-settled stock options, as with bonuses, the amount payable to each individual is calculated by multiplying the standard amount determined according to position and responsibilities by the weighting assigned to each indicator and the payment rate corresponding to the achievement rate of the targets, using the 3 indicators of consolidated net sales, consolidated operating income and consolidated net income.」
The actual compensation system discloses a calculation linked to the 3 indicators of consolidated net sales, operating income and net income and the target achievement rate, and expense recognition for the grants made in 2022 has progressed. - FY2023-Q2AdvancedAnnual report
「Number of stock acquisition rights: 10,637 (Note 1); class, details and number of underlying shares: common shares 1,063,700 (Note 1); exercise period: 14 July 2022 to 13 July 2037」
Under the stock option plan approved on 28 June 2022, a total of 10,637 stock acquisition rights covering 1,063,700 underlying shares were granted to directors, executive officers, employees and directors of subsidiaries, with the exercise period running from 14 July 2022 to 13 July 2037. A condition for determining the number of stock acquisition rights that may be exercised according to the degree of achievement of numerical targets is also disclosed. - FY2022ReframedAnnual report
「For equity-settled stock options, as with bonuses, the amount payable to each individual is calculated by multiplying the standard amount determined according to position and responsibilities by the weighting assigned to each indicator and the payment rate corresponding to the achievement rate of the targets, using the 3 indicators of consolidated net sales, consolidated operating income and consolidated net income.」
The stock option compensation framework was specified for the fiscal year ended March 2023 by linking compensation to the 3 indicators of net sales, operating income and net income. The weightings were 40% for net sales, 40% for operating income and 20% for net income. - FY2020RestatedAnnual report
「For equity-settled stock options, the Company selected “net sales” and “operating income” as the 2 performance indicators, based on the Company-wide numerical targets used in performance management, the interrelationships and simplicity of the indicators, and trends at other companies. Specific numerical targets are determined with reference to the medium-term management plan.」
The Company continues to position stock options as compensation linked to the enhancement of corporate value over the medium to long term, using net sales and operating income as performance indicators. - FY2019-Q2AdvancedAnnual report
「Resolution date 27 July 2018; category and number of eligible recipients (people): Employees 11; number of stock acquisition rights: 69」
As approved on 27 July 2018, 69 stock acquisition rights were granted to 11 employees. The exercise period and achievement of individually established performance targets are conditions for exercise. - FY2018AdvancedAnnual report
「In addition to basic compensation, directors receive share price-linked compensation through the grant of stock options. This is a mechanism under which management shares with shareholders the benefits of a rising share price and the risks of a falling share price, and it is positioned as compensation linked to the enhancement of corporate value over the medium to long term.」
Share price-linked compensation continues, and stock acquisition rights were granted to 32 employees pursuant to the resolution of 25 August 2017. Achievement of individual performance targets and other conditions is required for exercise. - FY2018-Q2AdvancedAnnual report
「Option holders are required to achieve their individually established performance targets and other conditions.」
During the second quarter accounting period, 183 stock acquisition rights covering 18,300 underlying shares were issued, with achievement of individual performance targets serving as an exercise condition. The exercise period runs from 1 July 2022 to 30 June 2033. - FY2017First statedAnnual report
「This is a mechanism under which management shares with shareholders the benefits of a rising share price and the risks of a falling share price, and it is positioned as compensation linked to the enhancement of corporate value over the medium to long term.」
The compensation design is described as sharing the effects of share price increases and decreases between management and shareholders, with exercise permitted after 3 years have elapsed and upon achievement of performance targets and other conditions.