Policy for determining executive compensation that reflects ability, responsibility and company performance
First written in FY2019. 3 of 6 entries say "Reframed", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026ReframedAnnual report
「The company decided to abolish the directors' retirement bonus system, and a proposal for lump-sum payments associated with its abolition was approved at the Annual General Meeting of Shareholders held on 27 June 2025.」
In addition to the existing compensation policy based on positions and performance indicators, it was disclosed that the directors' retirement bonus system had been abolished and transitioned to a cutoff payment. - FY2025AdvancedAnnual report
「To ensure the objectivity of the compensation-setting process, the policy for determining compensation for full-time and part-time directors, as well as the specific compensation structure, including the compensation table based on performance indicators and company performance, is reviewed and discussed in advance by the Directors' Nomination and Compensation Committee, composed of the Representative Director and President and independent outside directors, before being deliberated and determined by the Board of Directors.」
In addition to the policy for a compensation table based on basic compensation and profit indicators, advance review by the Directors' Nomination and Compensation Committee, composed of the Representative Director and President and independent outside directors, was explicitly disclosed. - FY2022ReframedAnnual report
「For full-time directors, standard amounts are set by position, taking into account levels commensurate with the required capabilities and responsibilities, with the aim of clarifying management responsibility and providing incentives to improve performance. Based on a compensation table using consolidated ordinary profit and unconsolidated net income as performance indicators, the standard amounts are varied within a specified range according to the levels of those profits in the previous fiscal year.」
While maintaining the policy of providing directors with basic compensation only, the method for determining compensation for full-time directors was made more specific through the use of a compensation table based on consolidated ordinary profit and unconsolidated net income, together with a specified adjustment range. - FY2021ReframedAnnual report
「Compensation for the company's directors consists solely of basic compensation, and the company has not adopted performance-linked compensation, including executive bonuses, or non-monetary compensation, such as restricted stock.」
In addition to the previous policy of varying compensation according to capabilities, responsibilities and company performance, the individual compensation policy resolved on 30 March 2021 explicitly stated that performance-linked compensation and non-monetary compensation would not be adopted. - FY2020RestatedAnnual report
「Executive compensation consists of compensation and bonuses. Standard amounts are set by position and according to whether the officer is full-time or part-time, taking into account levels commensurate with the required capabilities and responsibilities. These amounts are varied according to company performance and other factors, and compensation is determined within the limits approved at the General Meeting of Shareholders.」
The policy of combining standard amounts based on capabilities and responsibilities with adjustments based on company performance and other factors continues. - FY2019First statedAnnual report
「Executive compensation consists of compensation and bonuses. Standard amounts are set by position and according to whether the officer is full-time or part-time, taking into account levels commensurate with the required capabilities and responsibilities. These amounts are varied according to company performance and other factors, and compensation is determined within the limits approved at the General Meeting of Shareholders.」
The policy of determining executive compensation based on standard amounts commensurate with capabilities and responsibilities, with adjustments based on company performance and other factors, was disclosed separately for the first time.