Executive Incentives Through Performance-Linked Compensation
First written in FY2019. 2 of 5 entries say "Restated". Latest entry: FY2024.
- FY2024AdvancedAnnual report
「Under the performance-linked share-based compensation plan, points set in advance are granted according to the achievement of performance targets for the segment for which each participant is responsible, and the number of the company’s shares or other securities equivalent to the points is delivered when directors and other eligible individuals leave office. Performance targets for each responsible segment are set for each eligible individual after taking into account the performance targets established in the company’s medium-term management plan. The main targets are financial indicators that take capital costs into account, such as consolidated ROE, as well as non-financial indicators related to human capital that contribute to sustainability.」
The company has expanded executive compensation to include performance-linked share-based compensation using capital-cost indicators such as ROE and non-financial indicators related to human capital, in addition to the previous indicators such as operating income. - FY2023RestatedAnnual report
「Compensation for executive directors consists of fixed compensation and performance-linked compensation, with the ratio for the fiscal year approximately 6:4.」
The company continues its policy of setting the fixed-to-performance-linked compensation ratio at approximately 6:4 and its system of using operating income, consolidated operating income and other indicators as performance measures. - FY2022Higher proportion of performance-linked compensationAnnual report
「Compensation for executive directors consists of fixed compensation and performance-linked compensation, with the ratio for the fiscal year approximately 6:4. The primary performance indicators selected for performance-linked compensation are the company’s operating income, consolidated operating income and other indicators.」
The ratio of fixed to performance-linked compensation changed from the previous approximately 10:3 to 6:4, while the calculation method using operating income, consolidated operating income and other indicators continued. - FY2020RestatedAnnual report
「Compensation for executive directors consists of fixed compensation and performance-linked compensation, with the ratio for the fiscal year approximately 10:3. The primary performance indicators selected for performance-linked compensation are the company’s operating income, consolidated operating income and other indicators.」
The company continues its policy of calculating compensation using a fixed-to-performance-linked compensation ratio and operating income and consolidated operating income as indicators. - FY2019First statedAnnual report
「Compensation for executive directors consists of fixed compensation and performance-linked compensation, with the ratio for the fiscal year approximately 10:3. The primary performance indicators selected for performance-linked compensation are manufacturing and sales operating income, consisting mainly of the operating income of the manufacturing subsidiary 新晃空調工業株式会社 and the company’s operating income, as well as consolidated operating income and other indicators.」
The company specifically describes the ratio of fixed to performance-linked compensation for executive directors and the calculation method using manufacturing and sales operating income, consolidated operating income and other indicators.