Performance-Linked Stock Compensation Scheme Replacing Retirement Bonuses
First written in FY2020. 2 of 5 entries say "Advanced", first in FY2021-Q1. Latest entry: FY2025.
Shinnihonseiyaku moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2024: 3 of 32 companies on the "Worse" side.
3 other companies' latest entry also says "Reframed".
- FY2025ReframedAnnual report
「Share-based compensation consists of the performance-based share-based compensation scheme and other schemes approved at the 36th Annual General Meeting of Shareholders held on 19 December 2024.」
The company operates performance-based share-based compensation and retirement allowance-type share-based compensation schemes, and recorded ¥89 million in share-based compensation expense during the fiscal year. Meanwhile, the former PSU scheme was discontinued at the December 2024 general meeting of shareholders. - FY2024RaisedAnnual report
「The indicative ratio by type of compensation is basic compensation: performance-based share-based compensation: retirement allowance-type share-based compensation = 70:20:10, assuming 100% achievement of KPIs.」
The compensation mix changed from 75:12.5:12.5 to 70:20:10, increasing the proportion of performance-based share-based compensation. - FY2021AdvancedAnnual report
「The indicative ratio by type of compensation is basic compensation: compensation under the PSU scheme: compensation under the RS scheme = 75:12.5:12.5, assuming 100% achievement of KPIs.」
For performance-based PSUs and RSs replacing retirement allowances, the compensation ratio upon achievement of KPIs was specified as 75:12.5:12.5, and the PSU performance period was set at 3 years. - FY2021-Q1AdvancedAnnual report
「At the 32nd Annual General Meeting of Shareholders held on 23 December 2020, the company resolved to discontinue the directors' retirement allowance scheme and make a lump-sum payment of accrued retirement allowances. Accordingly, the company reversed the directors' retirement allowance provision in full and presented the ¥172 million previously recorded in that provision as long-term accounts payable, included under “Other” in non-current liabilities.」
The general meeting of shareholders resolved to discontinue the directors' retirement allowance scheme, and ¥172 million was transferred to long-term accounts payable. The transition to a share-based compensation scheme replacing retirement allowances has progressed at the scheme level. - FY2020First statedAnnual report
「The company's executive compensation is designed not only with a short-term perspective but also to enhance commitment to improving performance over the medium to long term and continuously increasing corporate value. Specifically, it consists of fixed cash compensation paid as consideration for the performance of duties, share-based compensation linked to performance during the relevant fiscal year and over the medium to long term, and share-based compensation replacing directors' retirement allowances, consisting of monetary compensation claims subject to contribution in kind. The compensation mix for executive directors is designed to comprise approximately 75% fixed compensation and approximately 25% share-based compensation, assuming performance-based compensation is paid at the standard amount.」
In addition to fixed cash compensation, the company has introduced share-based compensation linked to performance during the relevant fiscal year and over the medium to long term, as well as share-based compensation replacing retirement allowances, resulting in a mix of approximately 75% fixed compensation and 25% share-based compensation.