Linking Executive Compensation to Shareholder Value Through Performance-Based and Equity Compensation
First written in FY2017. 10 of 15 entries say "Advanced", first in FY2018-Q2. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026ReframedAnnual report
「The selected performance metrics include operating income, operating margin, ROE and TSR. These metrics were selected to assess improvements in profitability and shareholder value.」
TSR and the employee engagement score were incorporated into the performance metrics for performance-linked and stock-based compensation, resulting in a framework combining financial performance, shareholder value and human capital. - FY2024-Q3RestatedAnnual report
「The carrying amount and number of shares of the relevant treasury shares were ¥97 million and 133,900 shares, respectively, at the end of the previous consolidated fiscal year, and ¥95 million and 130,800 shares, respectively, at the end of the third quarter of the current consolidated fiscal year.」
For the shares remaining in the stock delivery trust for directors and executive officers, the disclosed carrying amount at the end of the third quarter was ¥95 million, representing 130,800 shares. The employee trust held ¥249 million, representing 366,100 shares. - FY2023AdvancedAnnual report
「Performance indicator | Unit | Target (A) | Actual (B) | Achievement rate (C=B/A, capped at 120%) | Weight (D) | Performance evaluation score (C*D)*100」
For performance-based compensation using revenue, operating profit, net income attributable to owners of the parent, operating profit margin, ROA, ROE and other measures, the Company disclosed a total evaluation score of 112.7 for the fiscal year ended March 2023. - FY2023-Q3AdvancedAnnual report
「At the end of the third quarter of the current consolidated accounting period, the carrying amount and number of shares of the relevant treasury shares were ¥97 million and 133,900 shares, respectively.」
For the executive stock delivery trust, the Company disclosed 133,900 remaining trust shares with a carrying amount of ¥97 million at the end of the third quarter, providing details on the operation of the scheme. For the employee trust, it also disclosed 366,100 shares with a carrying amount of ¥249 million. - FY2023-Q2AdvancedAnnual report
「Based on a resolution of the 99th Annual General Meeting of Shareholders held on 28 June 2022, the Company introduced a stock-based compensation scheme using Company shares for its directors, excluding outside directors, and executive officers under mandate.」
The Company moved from its former stock option scheme to schemes using a stock delivery trust for executives and a stock delivery trust for employees, and began operating the new schemes in fiscal 2022. - FY2022ReframedAnnual report
「Starting in fiscal 2022, the Company discontinued new grants of stock-based stock options and introduced stock-based compensation for directors, excluding outside directors.」
The Company changed its stock-based compensation system from one centred on stock options to one based on fixed points and performance-based points using a trust. - FY2022-Q2AdvancedAnnual report
「Company directors, excluding outside directors: 5 Company executive officers: 8 Number of stock acquisition rights (rights): * 374 Class, details and number of shares underlying the stock acquisition rights (shares): * Common shares: 37,400 Exercise period for the stock acquisition rights: * From 1 July 2021 to 30 June 2051」
The Company disclosed the specific grant of 374 stock acquisition rights representing 37,400 underlying shares to 5 directors and 8 executive officers under the resolution dated 25 June 2021. - FY2021AdvancedAnnual report
「Evaluation perspective | Performance indicator | Unit | Target (A) | Actual (B) | Achievement rate (C=B/A, capped at 120%) | Weight (D) | Performance evaluation score (C*D)*100 Profitability improvement | Revenue | ¥ million | 76,300 | 73,906 | 96.9% | 20% | 19.4 Operating profit | ¥ million | 2,300 | 1,969 | 85.6% | 20% | 17.1 Net income attributable to owners of the parent | ¥ million | 800 | 542 | 67.8% | 20% | 13.6 Operating profit margin | % | 3.0% | 2.7% | 90.0% | 10% | 9.0 ROE | % | 1.7% | 1.2% | 70.6% | 10% | 7.1 Total | 81.5」
For performance-based compensation using revenue, operating profit, net income attributable to owners of the parent, operating profit margin, ROA, ROE and other measures, the Company disclosed fiscal 2020 targets, actual results, achievement rates and a total score of 81.5. - FY2021-Q2AdvancedAnnual report
「25 June 2020 Categories and numbers of eligible persons (people): Company directors, excluding outside directors: 5 Company executive officers: 9 Number of stock acquisition rights (rights): * 388 Class, details and number of shares underlying the stock acquisition rights (shares): * Common shares: 38,800」
The Company disclosed the specific grant of 388 stock acquisition rights representing 38,800 underlying shares to 5 directors and 9 executive officers under the resolution dated 25 June 2020. - FY2020AdvancedAnnual report
「The total performance evaluation score was 57.4.」
For performance-based compensation, the Company disclosed its fiscal 2019 evaluation results based on revenue, operating profit, net income attributable to owners of the parent, operating profit margin, ROA, ROE and other measures. - FY2020-Q2AdvancedAnnual report
「Categories and numbers of eligible persons (people): Company directors, excluding outside directors: 5 Company executive officers: 10 Number of stock acquisition rights (rights): * 413 Class, details and number of shares underlying the stock acquisition rights (shares): * Common shares: 41,300」
The Company disclosed the specific grant of 413 stock acquisition rights representing 41,300 underlying shares to 5 directors and 10 executive officers under the resolution dated 26 June 2019. - FY2019-Q2AdvancedAnnual report
「Resolution date: 27 June 2018 Categories and numbers of eligible persons (people): Company directors, excluding outside directors: 6 Company executive officers: 7 Number of stock acquisition rights (rights): 430 Class, details and number of shares underlying the stock acquisition rights (shares): Common shares: 43,000 Exercise period for the stock acquisition rights: From 1 July 2018 to 30 June 2048」
Stock-based compensation was granted to 6 directors and 7 executive officers in the form of 430 stock acquisition rights representing 43,000 underlying shares, and the specific operation of the scheme progressed. - FY2018RestatedAnnual report
「The performance-based compensation system uses revenue, operating profit, net income, ROA, ROE and other measures as performance indicators from the perspectives of improving profitability and shareholder value, with compensation linked to performance.」
The policy of performance-based and stock-based compensation using revenue, operating profit, net income, ROA, ROE and other measures as performance indicators continues. - FY2018-Q2AdvancedAnnual report
「Stock acquisition rights issued during the second-quarter accounting period were as follows.」
As the 14th series of stock acquisition rights, 37 rights were issued, representing 37,000 underlying shares, and the specific operation of performance-based and stock-based compensation is progressing. - FY2017First statedAnnual report
「The performance-based compensation system uses revenue, operating profit, net income, ROA, ROE and other measures as performance indicators from the perspectives of improving profitability and shareholder value, with compensation linked to performance.」
The Company disclosed a performance-based compensation system using revenue, operating profit, net income, ROA and ROE as performance indicators, as well as a stock-based stock option structure.