Benchmark Values and Actual Results for Performance-Linked Executive Compensation
First written in FY2019. 2 of 8 entries say "Softened", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026ReframedAnnual report
「The performance-linked compensation metrics for the fiscal year under review were ① consolidated ordinary profit, ② consolidated ROIC, ③ segment ROIC, ④ consolidated ROE, and ⑤ individual performance evaluation. The achievement rate for each performance metric is defined as the percentage of the actual result for the evaluation period achieved against the target for that metric.」
The performance-linked compensation metrics were organized into 5 categories: consolidated ordinary profit, consolidated ROIC, segment ROIC, consolidated ROE, and individual performance evaluation. They were also linked to a new compensation structure that includes PSUs. - FY2025Decrease in performance-linked bonusesAnnual report
「The targets for the performance-linked compensation metrics for the fiscal year under review were ① ¥6,500 million, ② 7.6%, ③ ¥1,950 million, and ④ 5.4%, with total bonuses of ¥110 million. The actual results were ① ¥6,646 million, ② 7.8%, ③ ¥6,857 million, and ④ 5.0%. The achievement rate for the medium-term management plan was assessed at 76%, resulting in total bonuses of ¥95 million.」
Consolidated ordinary profit, ordinary profit margin on sales, and profit before income taxes exceeded their targets, but ROIC was 5.0% versus the 5.4% target and the achievement rate for the medium-term management plan was 76%. Total bonuses increased from ¥30 million in the previous year to ¥95 million. - FY2024Increase in performance-linked bonusesAnnual report
「The targets for the performance-linked compensation metrics for the fiscal year under review were ① ¥4,300 million, ② 5.7%, ③ ¥4,250 million, and ④ 3.7%, with total bonuses of ¥48 million. The actual results were ① ¥3,259 million, ② 4.6%, ③ ¥5,092 million, and ④ 2.2%. As the achievement rate for the medium-term management plan was assessed at below 80%, total bonuses amounted to ¥30 million.」
Actual results for performance-linked compensation based on 4 metrics were disclosed, and total bonuses increased from ¥24 million in the previous year to ¥30 million. Consolidated ordinary profit, ordinary profit margin on sales, and ROIC were below target, while profit before income taxes exceeded its target. - FY2023ReframedAnnual report
「The performance-linked compensation metrics are consolidated ordinary profit and consolidated profit before income taxes, which take into account not only operating profit generated through business activities but also non-operating income and expenses essential to operating the business as management, together with ROIC from the perspective of capital efficiency. The base amount for total bonuses is set at the amount corresponding to the level at which at least 3 of the following 4 metrics exceed their respective thresholds: ① consolidated ordinary profit, ② consolidated ordinary profit margin on sales, ③ consolidated profit before income taxes, and ④ ROIC (return on invested capital).」
The performance-linked compensation metrics were changed from 3 to 4, with ROIC added. As the targets were not achieved and the achievement rate for the medium-term management plan was below 80%, total bonuses decreased from ¥48 million in the previous year to ¥24 million. - FY2022AdvancedAnnual report
「The targets for the performance-linked compensation metrics for the fiscal year under review were ① ¥4,000 million, ② 5.4%, and ③ ¥4,850 million, with total bonuses of ¥48 million. The actual results were ① ¥4,122 million, ② 5.7%, and ③ ¥4,399 million, excluding insurance proceeds of ¥12,774 million received during the fiscal year, resulting in total bonuses of ¥48 million, corresponding to the level at which at least 2 metrics exceeded their thresholds.」
Ordinary profit and ordinary profit margin on sales exceeded their targets, resulting in the payment of ¥48 million in performance-linked bonuses under the applicable criteria. - FY2021SoftenedAnnual report
「The targets for the performance-linked compensation metrics for the fiscal year under review were ① ¥3,300 million, ② 4.7%, and ③ ¥3,350 million, while the actual results were ① ¥1,664 million, ② 2.6%, and ③ negative ¥9,590 million. As all 3 metrics were below the minimum thresholds for payment of performance-linked compensation for internal directors, namely ① ¥1,800 million or more, ② 3.0% or more, and ③ ¥1,500 million or more, no performance-linked compensation was paid to internal directors for the fiscal year.」
After the targets for performance-linked compensation were reduced from the previous year, the actual results were below the minimum threshold for all 3 metrics, and no performance-linked compensation was paid for the fiscal year. - FY2020SoftenedAnnual report
「The targets for the performance-linked compensation metrics for the fiscal year under review were ① ¥4,300 million, ② 5.7%, and ③ ¥3,660 million, while the actual results were ① ¥3,343 million, ② 4.6%, and ③ ¥2,978 million.」
The targets for performance-linked compensation were reduced from the previous year's ordinary profit of ¥5,700 million, ordinary profit margin on sales of 7.1%, and profit before income taxes of ¥5,500 million to ¥4,300 million, 5.7%, and ¥3,660 million, respectively. The actual results were below target for all 3 metrics. - FY2019First statedAnnual report
「The performance-linked compensation metrics are consolidated ordinary profit and consolidated profit before income taxes, which take into account not only operating profit generated through business activities but also non-operating income and expenses essential to operating the business as management, rather than operating profit alone. The total bonuses for internal directors and executive officers based on the previous year's performance are set at the amount corresponding to the level at which at least 2 of the following 3 metrics exceed their respective thresholds: ① consolidated ordinary profit, ② consolidated ordinary profit margin on sales, and ③ consolidated profit before income taxes. The targets for the performance-linked compensation metrics for the fiscal year under review were ① ¥5,700 million, ② 7.1%, and ③ ¥5,500 million, while the actual results were ① ¥3,468 million, ② 5.0%, and ③ ¥3,272 million.」
Consolidated ordinary profit, ordinary profit margin on sales, and profit before income taxes were used as performance-linked compensation metrics, with the targets and actual results for the fiscal year under review disclosed.