Vision 2020-Linked Performance-Based Stock Compensation and Global Executive Incentive Plan
First written in FY2018. 6 of 10 entries say "Advanced", first in FY2019-Q1. Latest entry: FY2026.
Nidec moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
8 other companies' latest entry also says "Reframed".
- FY2026ReframedAnnual report
「For STI (short-term incentives), in addition to annual net sales, operating income and FCF (free cash flow), we established new executive compensation evaluation criteria in March of the same year that incorporated factors related to the internal control system for fiscal 2026, thereby promoting awareness of processes and the medium- to long-term perspective.」
Reconfigured compensation evaluation from the previous linkage to net sales, operating income and ESG ratings to include FCF and internal control system factors, explicitly addressing the excessive focus on short-term performance. - FY2025AdvancedAnnual report
「The metrics used to measure achievement of performance targets will newly include, in addition to achievement of the consolidated net sales and consolidated operating income targets set in the annual plan, the number of primary ESG ratings in which targets were achieved among MSCI, FTSE and CDP, the 3 ratings.」
The performance-linked stock compensation program incorporates ESG ratings. For FY24, net sales were ¥2,607.8 billion against a target of ¥2,450.0 billion, operating income was ¥238.1 billion against a target of ¥260.0 billion, and 1 ESG rating target was achieved, CDP. - FY2024ReframedAnnual report
「The metrics used to measure achievement of performance targets will newly include, in addition to achievement of the consolidated net sales and consolidated operating income targets set in the annual plan, the number of primary ESG ratings in which targets were achieved among MSCI, FTSE and CDP, the 3 ratings.」
The program was changed to incorporate ESG ratings from MSCI, FTSE and CDP into the metrics for performance-linked stock compensation, in addition to the existing linkage to financial targets. - FY2023AdvancedAnnual report
「Consolidated net sales, 50%, ¥2,300.0 billion, ¥2,092.1 billion; consolidated operating income, 50%, ¥237.0 billion, ¥95.7 billion」
Under the revised performance-linked stock compensation program, discloses the FY22 net sales and operating income targets and actual results as evaluation metrics weighted 50% each. - FY2022AdvancedAnnual report
「Metric used; evaluation weight; FY21 target; FY21 actual: Consolidated net sales, 50%, ¥1,760.0 billion, ¥1,918.2 billion; consolidated operating income, 50%, ¥200.0 billion, ¥171.5 billion」
Under the revised performance-linked stock compensation program, disclosed and operated FY21 net sales and operating income as evaluation metrics weighted 50% each, together with their targets and actual results. - FY2022-Q1AdvancedAnnual report
「In connection with the continuation of the BIP and ESOP trusts, the Company will dispose of treasury shares through a third-party allotment to Japan Master Trust Bank of Japan, Ltd., which is a joint trustee with Mitsubishi UFJ Trust and Banking Corporation under the respective trust agreements.」
To continue the BIP and ESOP trusts, completed a disposal of treasury shares totaling 325,100 shares for a total disposal amount of ¥4,125 million on 5 August 2021. - FY2021ReframedAnnual report
「The program was structured so that compensation varies according to the degree of achievement of the consolidated net sales and consolidated operating income targets set in the annual plan.」
The Vision 2020-linked program was revised, changing it for the 3 fiscal years from the fiscal year ending March 2022 through the fiscal year ending March 2024 so that consolidated net sales and consolidated operating income each carry a 50% evaluation weight. - FY2019AdvancedAnnual report
「Metrics, values and evaluation weights used for short-term performance points: Consolidated net sales, FY2018 target ¥1,575.0 billion, actual ¥1,518.3 billion; consolidated operating income, target ¥190.0 billion, actual ¥138.6 billion」
Discloses the evaluation metrics, targets, actual results and performance multipliers for fiscal 2018 under the Vision 2020-linked performance-based stock compensation program. - FY2019-Q1AdvancedAnnual report
「NIDEC introduced a performance-linked stock compensation program from the first quarter of the current consolidated fiscal year. Compensation calculated under the program is recognized as an expense, with an equal amount recognized as an increase in capital surplus.」
For the performance-linked stock compensation program whose introduction was decided in FY2018, actual accounting treatment began in the first quarter of the current fiscal year. - FY2018First statedAnnual report
「The Company and its group companies are introducing this program to more clearly link the remuneration of eligible directors and others to the Company's equity value as the Group works together to achieve its medium-term management plan, Vision 2020, and enhance corporate value over the medium to long term; to increase motivation to achieve the performance targets in the medium-term management plan; and to encourage eligible directors and others to hold the Company's shares and contribute to sustainable growth in corporate value, including equity value.」
New BIP trusts for directors and executive officers and ESOP trusts for group executives in Japan and overseas were established. The program covers the 3 fiscal years from the fiscal year ending March 2019 through the fiscal year ending March 2021, with planned trust amounts of ¥1.05 billion for the BIP and ¥380 million for the ESOP. The number of shares will be determined according to the achievement rates for the consolidated net sales and consolidated operating income targets.