Executive Compensation System Linked to Net Sales and Operating Profit Margin
First written in FY2025. 1 of 2 entries say "Reframed", first in FY2026. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026ReframedAnnual report
「We selected operating profit growth as the indicator for performance-linked compensation because we considered it an objective measure for assessing achievement of management targets. Performance-linked compensation target: consolidated operating profit of ¥2,200 million, the initial budget, and consolidated operating profit growth of 12.6%. Actual performance-linked compensation results: consolidated operating profit of ¥2,681 million and consolidated operating profit growth of 37.3%.」
The system changed from being linked to revenue and operating profit margin to using consolidated operating profit growth as the indicator, with the initial target and actual result disclosed. - FY2025First statedAnnual report
「In addition to fixed compensation, we introduced performance-linked compensation for executive directors that varies within a prescribed range according to actual revenue and operating profit margin. The amount paid varies from 0% to 100% according to the degree of achievement of the targets.」
The company introduced a revenue- and operating-profit-margin-linked component in executive director compensation, varying from 0% to 100% according to target achievement.