Performance-based compensation linked to net sales, operating profit, free cash flow, and other metrics
First written in FY2017. 5 of 10 entries say "Advanced", first in FY2019. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026ReframedAnnual report
「The compensation system for directors, excluding outside directors, comprises fixed base compensation, short-term performance-based compensation as STI (short-term incentive), and restricted stock compensation and performance-based stock compensation as LTI (long-term incentive).」
The executive compensation system was redesigned as an STI/LTI structure that, in addition to short-term performance-based compensation, includes performance-based stock compensation over 3 fiscal years using relative TSR and other metrics. The financial and nonfinancial weighting of short-term performance-based compensation is 80% and 20%, respectively. - 2026-05-29AdvancedGeneral Meetings of Shareholders
「From FY2026, all presidents of operating companies concurrently serve as executive officers of the company as business CEOs, with the aim of increasing corporate value from the perspective of optimizing the Group as a whole.」
Performance-linked compensation was developed into a performance-linked stock compensation plan tied to the roles of business CEOs, including all operating-company presidents. The company also disclosed a 3-fiscal-year performance period using relative TSR and malus and clawback provisions. - FY2025-H1AdvancedAnnual report
「11 July 2024 179,700 … 21 August 2024 5,500 … This increase resulted from the paid issuance of new shares as restricted stock compensation.」
As restricted stock compensation, the Company issued 179,700 shares on 11 July 2024 and 5,500 shares on 21 August 2024. - FY2024AdvancedAnnual report
「The short-term performance-based component varies from a minimum of 0% to a maximum of 200% for each evaluation category. The medium-term performance-based component varies from 0% to 400% for the Representative Director, President and Executive Officer, and from 0% to 325% for other directors.」
Performance-based compensation incorporates nonfinancial metrics including environmental, human resources and compliance measures in addition to financial metrics such as ROE and operating cash flow, with specific payout ranges established for the short- and medium-term components. - FY2023ReframedAnnual report
「Based on the vision targeted under the Group's new medium- to long-term strategy following the transition to a business-company structure, incentives for achieving it are determined by reflecting evaluations of financial and nonfinancial factors.」
Performance-based compensation was redesigned from the previous system centered on financial metrics such as operating cash flow to one combining short- and medium-term evaluations with financial metrics including EBITDA, ROE and operating cash flow, as well as nonfinancial metrics including environmental contributions, human resources strategy, compliance and DX. - FY2022ReframedAnnual report
「Based on the vision targeted under the Group's new medium- to long-term strategy following the transition to a business-company structure, the Company will revise its performance-based compensation system for payments reflecting fiscal 2022 results. In addition to financial metrics focused on operating cash flow and other measures, the evaluation items will include nonfinancial factors related to sustainability, such as environmental contributions, and a new component reflecting medium-term as well as single-year performance will be introduced.」
Performance-based compensation was changed from a system centered on financial metrics such as operating cash flow to one that includes nonfinancial factors such as sustainability and medium-term performance. - FY2021AdvancedAnnual report
「Performance-based compensation is determined in order to encourage improved performance and is linked to the single-year performance evaluation of the Company as a whole and the relevant business. The system is designed so that the payout increases with results, ranging from 0% to 150% of base compensation, with 75% paid when standard targets are achieved.」
The Company disclosed a performance-based compensation structure with a payout rate of 0% to 150% of base compensation, and 75% when standard targets are achieved. The evaluation metrics include adjusted operating profit, net income and operating cash flow. - FY2020ReframedAnnual report
「From fiscal 2019 results, the evaluation items were changed from the previous metrics, including revenue, operating profit, free cash flow and CCM, to simpler and more readily understandable metrics. Specifically, the evaluation focuses on achievement of operating cash flow targets and is determined together with metrics including adjusted operating profit, net income and inventory.」
The evaluation metrics for performance-based compensation were changed from revenue, operating profit, free cash flow, CCM and other measures to a structure focused on operating cash flow. - FY2019AdvancedAnnual report
「Performance-based compensation is determined in order to encourage improved performance, using revenue, operating profit, free cash flow, CCM and other metrics, and is designed to range from a minimum of 0% to more than 150% of base compensation based on the payout rate.」
The Company specified the evaluation metrics and the range of variation in the payout rate for performance-based compensation. - FY2017First statedAnnual report
「Performance-based compensation is determined in order to encourage improved performance and is linked to evaluations of the Company-wide and relevant business's performance using revenue, operating profit, free cash flow, CCM and other metrics.」
The Company specified a system under which the performance-based portion of executive compensation is evaluated using revenue, operating profit, free cash flow and CCM.