Executive Compensation Structure Including Performance-Linked and ESG Factors
First written in FY2021. 2 of 3 entries say "Advanced", first in FY2023. Latest entry: FY2025.
- FY2025AdvancedAnnual report
「The 2 indicators used as the basis for calculating the payment amount are ㋑ consolidated operating profit and ㋺ net income attributable to owners of the parent. After calculating the achievement rate for each of ㋑ and ㋺, the bonus payout rate is calculated using an 80:20 weighting. The total base amount for bonuses is set at 33% of total fixed compensation, rounded up to the nearest ¥1 million.」
For performance-linked compensation, the Company specifies consolidated operating profit and net income attributable to owners of the parent as the indicators, an 80:20 weighting, a base amount equal to 33% of total fixed compensation, and payout rates linked to achievement levels, including their upper and lower limits. - FY2023AdvancedAnnual report
「The 2 indicators used as the basis for calculating the payment amount are ㋑ consolidated operating profit and ㋺ net income attributable to owners of the parent. The bonus payout rate is calculated using an 80:20 weighting for the achievement rates of ㋑ and ㋺. The indicative composition by type of compensation is 60–75% base compensation, 15–30% performance-linked compensation and other compensation, and 5–15% non-monetary compensation and other compensation.」
For performance-linked compensation, the Company specifies consolidated operating profit and net income attributable to owners of the parent as the indicators, with an 80:20 weighting and indicative proportions for fixed, performance-linked, and stock-based compensation. - FY2021First statedAnnual report
「Performance-linked compensation and other compensation is paid annually at a specified time as a bonus, with the amount calculated based on consolidated performance and other factors for each fiscal year, taking into account the progress made by each director in implementing key initiatives. After the initial setting, the target performance indicators and their targets are to be reviewed as appropriate in response to changes in the environment, based on recommendations from the Nomination and Compensation Committee. Key initiatives for directors are also to include initiatives related to non-financial indicators such as ESG (environmental, social and governance) factors.」
In addition to introducing restricted stock compensation, the Company explicitly sets out a compensation structure comprising fixed compensation, performance-linked compensation, and stock-based compensation, as well as the policy of including non-financial indicators such as ESG factors among the key initiatives.