Executive Compensation Linked to Operating Income and ROE
First written in FY2016. 13 of 19 entries say "Advanced", first in FY2017-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2020: 4 of 34 companies on the "Worse" side.
26 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Consolidated operating income ¥208,500 million (target), ¥272,415 million (actual) Consolidated ROIC 6.5% (target), 7.5% (actual)」
The targets and actual results for operating income and ROIC were disclosed as metrics for performance-linked bonuses. Actual results exceeded targets for both, and 48,500 shares were delivered as deferred-delivery share-based compensation. - 2026-05-21AdvancedGeneral Meetings of Shareholders
「PSUの評価指標及び支給割合」
PSUについて、営業利益、ROIC、CO2排出削減、従業員エンゲージメント及び相対TSRを評価指標とし、各指標の目標と支給割合を具体的に開示した。 - FY2026-H1AdvancedAnnual report
「As of the filing date, 725,000 of the issued shares were attributable to an in-kind contribution of monetary compensation receivables totaling ¥1,295 million when treasury shares were disposed of as deferred-delivery share-based compensation.」
The disposal of treasury shares under the deferred-delivery share-based compensation plan was disclosed, involving 725,000 shares and monetary compensation receivables of ¥1,295 million. - FY2025AdvancedAnnual report
「<PSU evaluation metrics and payout percentages> Financial metrics Operating income target in the medium-term management plan (Cumulative for 3 years) ¥66.84 billion 0–100% ROIC target in the medium-term management plan 8.1% Non-financial metrics CO₂ emissions reduction target in the medium-term management plan (SBTi Scope 1 + 2, versus the fiscal year ending March 2022) 23.3% Employee engagement targets in the medium-term management plan ① Communication score ② Survey participation rate ① 75 pt ② 80% Share price metric Relative TSR (versus TOPIX) － 0–200%」
The PSU evaluation metrics are being operated with specific targets and payout percentages for CO2 emissions reductions, employee engagement, and relative TSR in addition to operating income and ROIC. - FY2025-H1AdvancedAnnual report
「As of the filing date, 425,000 of the issued shares were attributable to an in-kind contribution of monetary compensation receivables totaling ¥732 million when treasury shares were disposed of as deferred-delivery share-based compensation.」
The disposal of treasury shares under the deferred-delivery share-based compensation plan was disclosed, involving 425,000 shares and monetary compensation receivables of ¥732 million. - FY2024RaisedAnnual report
「For the performance metrics used to evaluate PSUs under the deferred-delivery share-based compensation plan, environmental and social metrics have been introduced to increase the desire to contribute to the realization of a sustainable society. A stock price metric has also been introduced to further incentivize management that is conscious of the cost of capital and share price.」
The PSU evaluation metrics were expanded from operating income and ROE to include CO2 emissions reductions, employee engagement, ROIC, and relative TSR. - FY2023RestatedAnnual report
「Consolidated operating income ¥182,700 million (target), ¥168,827 million (actual) Consolidated ROE 12.7% (target), 8.3% (actual)」
The targets and actual results for operating income and ROE were disclosed for performance-linked bonuses. The system linking compensation to performance achievement continues. - FY2022AdvancedAnnual report
「The number of company shares delivered and the amount of cash paid as PSUs are calculated according to the degree of achievement of the performance targets in the medium-term management plan. The degree of target achievement varies from 0% to 100% according to achievement of the consolidated operating income and ROE targets in the medium-term management plan. The PSU-related targets and actual results for the medium-term management plan ending in the fiscal year ending March 2024 are as follows. Consolidated operating income (cumulative for 3 years): ¥635,100 million (target) Consolidated ROE (final-year figure): 16.8% (target)」
The transition from performance-linked stock options to deferred-delivery share-based compensation entered the implementation stage, and the PSU targets of ¥635,100 million in cumulative operating income over 3 years and 16.8% final-year ROE were specified. - FY2021ReframedAnnual report
「Share-based compensation granted from the fiscal year ending March 2021 will be provided as deferred-delivery share-based compensation. After the end of the 3-year period from the first day of the first fiscal year to the final day of the final fiscal year of the medium-term management plan, or such period of 3 years or more as determined by the Board of Directors, approximately half of the shares to be delivered will be provided in shares and the remainder in cash.」
The company changed its system from the former performance-linked stock options to deferred-delivery share-based compensation, including RSUs and PSUs, from the fiscal year ending March 2021. PSU awards vary from 0% to 100% according to achievement of the operating income and ROE targets in the medium-term plan. - FY2021-Q1AdvancedAnnual report
「Board resolution dated 25 May 2020 (for directors, share-based compensation type)」
Conditions were established for the stock acquisition rights for directors approved on 25 May 2020, under which the number of exercisable rights varies according to the degree of achievement of the consolidated operating income and consolidated ROE targets in the medium-term management plan. - FY2020ReframedAnnual report
「The stock option plan in the form of share-based compensation is scheduled to change to a deferred-delivery share-based compensation plan from the 125th fiscal period (fiscal year ending March 2021).」
The policy of linking compensation to operating income and ROE was maintained, while a plan was presented to change from stock options in the form of share-based compensation to a deferred-delivery share-based compensation plan from the fiscal year ending March 2021. - FY2020-Q2AdvancedAnnual report
「⑤ Performance achievement conditions will be attached to a portion of the allocated stock acquisition rights. If the conditions are met, all stock acquisition rights subject to the conditions may be exercised. If the conditions are not met, some or all of the stock acquisition rights subject to the conditions may not be exercised, depending on the degree of non-achievement. Specifically, if the performance targets for consolidated operating income and consolidated ROE in the medium-term management plan are achieved, 100% of the rights will be exercisable. If the targets are not achieved, the number of exercisable rights will decrease in proportion to the shortfall, and if performance falls below the minimum target set in advance, the number of exercisable rights will be zero.」
Conditions were also established for the stock acquisition rights for directors approved on 19 June 2019, linking the number of exercisable rights to achievement of the consolidated operating income and ROE targets in the medium-term management plan. - FY2020-Q1AdvancedAnnual report
「⑤ Performance achievement conditions will be attached to a portion of the allocated stock acquisition rights. If the conditions are met, all stock acquisition rights subject to the conditions may be exercised. If the conditions are not met, some or all of the stock acquisition rights subject to the conditions may not be exercised, depending on the degree of non-achievement. Specifically, if the performance targets for consolidated operating income and consolidated ROE in the medium-term management plan are achieved, 100% of the rights will be exercisable. If the targets are not achieved, the number of exercisable rights will decrease in proportion to the shortfall, and if performance falls below the minimum target set in advance, the number of exercisable rights will be zero.」
The conditions linking the number of exercisable rights to achievement of the consolidated operating income and ROE targets in the medium-term management plan were disclosed for the stock acquisition rights for directors and executive officers approved on 26 March 2019 and issued on 6 April of the same year. - FY2019AdvancedAnnual report
「Consolidated operating income ¥101.6 billion (target), ¥107.8 billion (actual) Consolidated ROE 8.2% (target), 9.7% (actual)」
The targets and actual results for operating income and ROE for the fiscal year were specifically disclosed for performance-linked compensation. - FY2019-Q2AdvancedAnnual report
「Specifically, if the performance targets for consolidated operating income and consolidated ROE in the medium-term management plan are achieved, 100% of the options will be exercisable. If the targets are not achieved, the number of exercisable options will decrease in proportion to the shortfall, and if performance falls below the minimum target set in advance, the number of exercisable options will be zero.」
The conditions linking the number of exercisable rights to achievement of the consolidated operating income and ROE targets in the medium-term plan were disclosed for the stock acquisition rights for directors approved on 20 June 2018. - FY2018RestatedAnnual report
「In addition to consolidated results for the fiscal year, namely operating income and ROE, metrics established for each responsible division are used. Compensation varies from 0% to 200% of the standard payment amount according to the degree of achievement against the target.」
The system under which short-term bonuses vary from 0% to 200% in line with operating income, ROE, and divisional metrics was confirmed for the full fiscal year. - FY2018-Q2AdvancedAnnual report
「Specifically, if the performance targets for consolidated operating income and consolidated ROE in the medium-term management plan are achieved, 100% of the options will be exercisable. If the targets are not achieved, the number of exercisable options will decrease in proportion to the shortfall, and if performance falls below the minimum target set in advance, the number of exercisable options will be zero.」
Share-based compensation-type stock acquisition rights were issued in 2017, and the system linking the number of exercisable rights to achievement of the consolidated operating income and ROE targets in the medium-term plan moved into the implementation stage. - FY2017-Q2AdvancedAnnual report
「Specifically, if the performance targets for consolidated operating income and consolidated ROE in the medium-term management plan are achieved, 100% of the options will be exercisable. If the targets are not achieved, the number of exercisable options will decrease in proportion to the shortfall, and if performance falls below the minimum target set in advance, the number of exercisable options will be zero.」
Share-based compensation-type stock acquisition rights were issued in 2016, and specific conditions were established linking the number of exercisable rights to the degree of achievement of the consolidated operating income and consolidated ROE targets in the medium-term management plan. - FY2016First statedAnnual report
「In addition to consolidated results for the fiscal year, namely operating income and ROE, metrics established for each responsible division are used. Compensation varies from 0% to 200% of the standard payment amount according to the degree of achievement against the target.」
The company describes a system under which short-term bonuses vary from 0% to 200% according to achievement of targets such as operating income and ROE.