Executive Compensation Governance through Nominating and Compensation Committees and Performance-Linked and Stock-Based Compensation
First written in FY2021. 1 of 3 entries say "Reframed", first in FY2023. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「During the fiscal year, the Company held its voluntary Nomination and Compensation Committee four times,」
The Nomination and Compensation Committee met 4 times to deliberate specifically on personnel matters involving representative directors, directors and executive officers, executive bonuses, revisions to compensation amounts, and reviews of the executive structure. - FY2023ReframedAnnual report
「Performance-linked compensation and other payments are generally determined using consolidated operating income as the primary performance indicator to promote awareness of Group-wide growth and improved performance in each fiscal year. The company also considers the standalone results of the company, dividends to shareholders and employee bonuses, and pays the resulting amount as directors’ bonuses.」
The company has reorganized the explanation from one based on consolidated net income to a system in which consolidated operating income is the primary indicator for directors’ bonuses, with bonuses evaluated against consolidated operating income of ¥2.5 billion. - FY2021First statedAnnual report
「At a meeting of the Board of Directors held on 12 February 2021, the company resolved its policy for determining the content of individual compensation and other payments for directors. Specifically, consolidated net income of ¥1 billion is set as the target benchmark for achieving earnings. If earnings fluctuate by ¥200 million or more above or below this benchmark, the base bonus is adjusted by 15%; if they fluctuate by ¥500 million or more, it is adjusted by 30%. From April 2021, the company will establish a voluntary nomination and compensation committee and periodically review the policy based on the committee’s recommendations.」
The company newly resolved its policy on individual director compensation, outlining a system combining performance-linked compensation based on consolidated net income, restricted stock compensation, and a voluntary nomination and compensation committee from April 2021.