Introduction of a Performance-Based Share Remuneration Plan (BIP Trust)
First written in FY2017. 6 of 8 entries say "Reframed", first in FY2021. Latest entry: FY2026.
Mitsubishi Steel Mfg. moved to the "Worse" side of this theme in 2021, 5 years before the typical company in this theme (2026).
10 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「In connection with the transition to a company with an Audit and Supervisory Committee, the eligible participants in the performance-linked stock compensation scheme are scheduled to be changed to the Company’s directors, excluding directors who are Audit and Supervisory Committee members, outside directors and non-residents of Japan, as well as executive officers serving under delegation or employment agreements, excluding non-residents of Japan. In addition, with the aim of further increasing corporate value, the performance indicators are scheduled to be revised to include consolidated operating profit, profit attributable to owners of the parent, ROE, TSR and target figures under the medium-term management plan, including GHG emissions reductions.」
In line with the transition to a company with an Audit and Supervisory Committee, the eligible participants and performance indicators for the BIP trust are scheduled to be reorganized, with the scheme revised to include net income, ROE, TSR and GHG emissions reductions, among other indicators. - FY2023ReframedAnnual report
「At the 99th Annual General Meeting of Shareholders held on 28 June 2023, it was resolved to continue and partially revise the scheme.」
The BIP trust will be continued, with the eligible period set at the 3 fiscal years from the fiscal year ending March 2024 through the fiscal year ending March 2026, and the scheme reorganized to provide for trust funding of ¥381 million and a maximum grant of 423,000 shares, among other changes. - FY2021ReframedAnnual report
「At the 97th Annual General Meeting of Shareholders held on 25 June 2021, the Company resolved to continue the plan and make partial revisions to its terms.」
The BIP trust scheme will be continued, with its scope expanded to executive officers who enter into delegation agreements, in addition to directors other than outside directors, and the scheme’s provisions have been reorganized. - FY2018-Q2AchievedAnnual report
「From the second quarter of the current fiscal year, the Company introduced the “Executive Compensation BIP Trust” (a performance-linked stock compensation plan for directors) pursuant to a resolution at the 93rd Annual General Meeting of Shareholders held on 23 June 2017. Under the performance-linked stock compensation plan, the trust will deliver the Company’s shares acquired by the trust and cash equivalent to the proceeds from disposing of the shares to eligible directors according to performance achievement and other factors. In the second quarter of the current fiscal year, the carrying value and number of these shares were ¥157 million and 543 thousand shares, respectively.」
The performance-linked stock compensation plan for directors entered the implementation phase from the second quarter of the current fiscal year following the introduction of the BIP trust. The trust also acquired shares, which were recorded at a carrying value of ¥157 million and 543 thousand shares. - FY2017First statedAnnual report
「The Company has approved and adopted a framework known as a BIP (Board Incentive Plan) trust to establish an executive compensation system for directors that is closely linked to medium- and long-term performance and aligns their interests with those of shareholders, with the aim of increasing incentives to improve medium- and long-term performance and enhance corporate value.」
The Company approved a policy to introduce a BIP trust for directors, aimed at aligning their interests with shareholders and linking compensation to medium- and long-term performance. The trust is expected to be funded with ¥161 million and to run from 19 September 2017 through the end of August 2021.