Determining Directors' Compensation and Bonuses Using Consolidated Financial Results
First written in FY2021. 2 of 3 entries say "Advanced", first in FY2022. Latest entry: FY2023.
The whole theme swung hardest in 2020: 5 of 26 companies on the "Worse" side.
18 other companies' latest entry also says "Advanced".
- FY2023AdvancedAnnual report
「In determining base compensation, we also take into account performance-linked factors, including consolidated net sales and net income, which serve as indicators of medium- to long-term performance improvement and sustained growth in corporate value, in addition to each director’s position, responsibilities, industry practices and areas of oversight.」
The annual review of base compensation based on recommendations from the Nomination and Compensation Committee, performance-linked compensation using consolidated net sales and net income, and the deliberation process involving a majority of outside directors were clarified. - FY2022AdvancedAnnual report
「In addition, on 16 December 2022, we established a Nomination and Compensation Committee to ensure transparency and objectivity in the evaluation and decision-making processes relating to the nomination and compensation of directors, and strengthened the framework for obtaining appropriate involvement and advice from independent outside directors. The Nomination and Compensation Committee consists of at least 3 directors selected by the Board of Directors, with a majority being independent outside directors.」
In addition to the existing delegation of compensation decisions for representative directors, a Nomination and Compensation Committee with a majority of independent outside directors was established, clarifying the compensation decision-making process. - FY2021First statedAnnual report
「Base compensation is determined by taking into account the individual's position, responsibilities and experience, as well as consolidated financial results such as revenue and net income and the individual's contribution to the Company. Bonuses are determined comprehensively based on consolidated financial results such as net income and the individual's contribution to the Company.」
For directors’ base compensation and bonuses, a decision-making method that takes into account financial results such as consolidated net sales and net income, as well as contributions to the Company, was identified for the first time.