Reduction of executive compensation in response to COVID-19 and introduction of performance-linked compensation
First written in FY2021. 3 of 5 entries say "Reframed", first in FY2024. Latest entry: FY2026.
MS&Consulting moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2022: 2 of 17 companies on the "Worse" side.
0 other companies' latest entry also says "Reframed".
- FY2026Update to the performance-linked compensation benchmark for the fiscal year ending February 2027Annual report
「• Metric: Net income attributable to owners of the parent for the fiscal year ending February 2027 • Benchmark: ¥220 million (forecast of ¥220 million stated in the earnings release dated 10 April 2026) • If above the benchmark: determined subject to a cap of 10% of each director’s annual base compensation If below the benchmark: 0% of each director’s annual base compensation」
The applicable fiscal year for performance-linked compensation was updated to the fiscal year ending February 2027. The scheme sets net income attributable to owners of the parent of ¥220 million as the benchmark and caps compensation at 10% of annual base compensation. - FY2025Update to the benchmark and cap for performance-linked compensationAnnual report
「C. Calculation method for performance-linked compensation • Metric: Net income attributable to owners of the parent for the fiscal year ending February 2026 • Benchmark: ¥200 million (forecast of ¥151 million stated in the earnings release dated 14 April 2025) • If above the benchmark: determined subject to a cap of 20% of each director’s annual base compensation If below the benchmark: 0% of each director’s annual base compensation」
For the fiscal year ending February 2026, the compensation scheme was updated to performance-linked compensation based on net income attributable to owners of the parent of ¥200 million, subject to a cap of 20% of executive directors’ annual base compensation. - FY2024Details of performance-linked compensation for the fiscal year ending February 2025Annual report
「Benchmark: ¥220 million (forecast of ¥206 million stated in the earnings release dated 8 April 2024) If above the benchmark: determined subject to a cap of 10% of each director’s annual base compensation If below the benchmark: 0% of each director’s annual base compensation」
The compensation scheme was reorganized from the previous COVID-19-related reduction in compensation to performance-linked compensation based on net income attributable to owners of the parent of ¥220 million for the fiscal year ending February 2025. - FY2022AdvancedAnnual report
「The benchmark for the performance-linked compensation metric for the fiscal year was net income attributable to owners of the parent of ¥145 million for the fiscal year ending February 2022, while actual results were ¥207 million. As this substantially exceeded the benchmark, the Company paid a year-end bonus equivalent to 10% of annual compensation before the reduction, in addition to the performance-linked compensation. The performance-linked compensation and year-end bonus totaled 15% of annual compensation before the reduction, reducing the effective compensation cut from the original 30% to 15%.」
Actual net income was ¥207 million against the ¥145 million benchmark for performance-linked compensation. As a result, 5% in performance-linked compensation and an additional 10% year-end bonus were paid, making the effective reduction in executive directors’ compensation 15%, compared with the original 30%. - FY2021First statedAnnual report
「In response to the deterioration in performance caused by the COVID-19 pandemic, the monthly compensation of executive directors was reduced by 30% for 16 months from February 2021 through May 2022. If net income attributable to owners of the parent for the fiscal year ending February 2022 exceeded the benchmark, the amount would be 5% of each director’s annual benchmark compensation before the reduction.」
To address the deterioration in performance caused by the pandemic, compensation for executive directors was reduced by 30% for 16 months, while full-time Audit and Supervisory Committee members voluntarily returned 15% of their compensation. In addition, performance-linked compensation based on net income attributable to owners of the parent of ¥145 million for the fiscal year ending February 2022 was introduced.