Executive Compensation Design Linked to Performance and Focused on Enhancing Corporate Value
First written in FY2019. 5 of 6 entries say "Advanced", first in FY2020. Latest entry: FY2026-H1.
- FY2026-H1AdvancedAnnual report
「Of the issued shares, 20,617 shares were issued as restricted stock compensation through an in-kind contribution, with monetary compensation claims of ¥8.267 million as the contributed asset.」
The company disclosed a specific example of operating the executive compensation design focused on performance and enhancing corporate value, having issued 20,617 shares as restricted stock compensation. - FY2025AdvancedAnnual report
「Performance indicator: Operating income Number of shares to be delivered based on the evaluation period Position Base number of shares to be delivered Director 9,900 shares」
The performance-linked compensation system was expanded from cash compensation to include share-based compensation. For the fiscal year ending October 2026, operating income is the performance indicator, the forecast operating income is negative ¥170 million, and the base number of shares to be delivered is 9,900. - FY2022AdvancedAnnual report
「Performance-linked compensation and other compensation are cash compensation reflecting the performance indicator Cell Source Growth Rate (CSGR) to raise awareness of improving performance in each fiscal year.」
CSGR was specified as the performance indicator for performance-linked compensation, and a system was disclosed under which individual compensation is determined after receiving a recommendation from the Nomination and Compensation Advisory Committee. - FY2021AdvancedAnnual report
「Performance-linked compensation and other compensation are cash compensation reflecting performance indicators, namely operating income and net income, to raise awareness of improving performance in each fiscal year, and whether to make payments is determined by taking into account the outlook for the business environment and other factors.」
In addition to the basic policy for fixed and performance-linked compensation, a specific calculation policy using operating income and net income as performance indicators was established. In January 2022, the system was also revised to pay bonuses based on the year-on-year growth rate in net sales and operating income. - FY2020AdvancedAnnual report
「Director compensation consists of fixed compensation and variable compensation, with variable compensation determined based on company performance and individual contributions.」
A basic policy consisting of fixed compensation and performance-linked variable compensation was established by resolution of the Board of Directors, replacing the previous policy of consideration. - FY2019First statedAnnual report
「Variable compensation is determined based on company performance and individual contributions. However, as of the filing date of this document, no detailed policy has been established for determining the amount of executive compensation or the method of calculation. The company will consider this going forward, taking into account the duties of each executive, incentives linked to short-term performance and incentives aimed at enhancing corporate value over the medium to long term.」
The company envisages variable compensation linked to company performance and individual contributions, with the detailed policy to be considered going forward.