Revision of the calculation method for performance-linked director compensation
First written in FY2017. 3 of 8 entries say "Advanced", first in FY2021. Latest entry: 2026-08-21.
Galilei Holdings moved to the "Worse" side of this theme in 2022, 2 years before the typical company in this theme (2024).
The whole theme swung hardest in 2018: 3 of 10 companies on the "Worse" side.
33 other companies' latest entry also says "Advanced".
- FY2025ReframedAnnual report
「The metric for performance-linked compensation is calculated by deducting the increase in prepaid pension expenses or the decrease in the provision for retirement benefits, excluding expenses recognized as extraordinary losses or gains such as actuarial differences, from operating profit before deducting individual performance-linked compensation, hereinafter referred to as “individual operating profit.”」
The company presented a change in the basis for calculating performance-linked compensation from individual operating profit to consolidated operating profit for shareholder meeting proposals. It also presented new payout rates by position and a ¥200 million total cap. - FY2022ReframedAnnual report
「As part of its review of the executive compensation system, the company has revised its policy for determining the compensation and other benefits of individual directors in connection with abolishing the executive retirement benefit system and introducing a new restricted stock compensation system, with the aim of providing incentives for the sustainable enhancement of corporate value and promoting greater value sharing with shareholders.」
The company revised the annual cap for performance-linked compensation from ¥150 million to ¥200 million, abolished the executive retirement benefit system and reorganized it into a restricted stock compensation system. - FY2021AdvancedAnnual report
「The ratio of base compensation to performance-linked compensation is generally set at approximately 5:5 when performance targets are achieved 100%, and is determined based on each director’s position, responsibilities and other factors.」
The company established its policy for determining director compensation on 26 February 2021 and set the indicative ratio of fixed compensation to performance-linked compensation at 5:5. Actual individual operating profit for the fiscal year was ¥6,471 million. - FY2020RestatedAnnual report
「The metric for performance-linked compensation is calculated by deducting the increase in prepaid pension expenses or the decrease in the provision for retirement benefits from operating profit before deducting individual performance-linked compensation, hereinafter referred to as “individual operating profit.”」
The company continues to calculate performance-linked compensation based on individual operating profit. The annual performance-linked compensation cap for directors is ¥150 million, and the target consolidated operating margin is 10.0%. - FY2018RestatedAnnual report
「The company has revised the calculation method for performance-linked compensation pursuant to a resolution at the General Meeting of Shareholders held on 29 June 2016. Accordingly, the calculation method for performance-linked compensation for the 68th fiscal year, from 1 April 2018 to 31 March 2019, is as follows.」
The company stated that the revised calculation method for performance-linked compensation based on individual operating profit would also apply to the following fiscal year. - FY2017First statedAnnual report
「The company has revised the calculation method for performance-linked compensation pursuant to a resolution at the General Meeting of Shareholders held on 29 June 2016. Accordingly, the calculation method for performance-linked compensation for the 67th fiscal year, from 1 April 2017 to 31 March 2018, is as follows.」
The company provided details of the calculation method to be applied from the following fiscal year and the ¥150 million total cap for performance-linked compensation based on individual operating profit and payout rates by position.