Performance-Linked Compensation Tied to Consolidated Ordinary Profit Margin
First written in FY2019. 1 of 4 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
57 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Based on this policy, the Board of Directors resolved the compensation for executive directors at an extraordinary Board meeting held on 25 June 2025. The consolidated ordinary profit margin for the fiscal year ended March 2025 was 19.5%, compared with the target of 10% or higher, and the payment proportions were 51% for the fixed component and 49% for the performance-based component.」
Based on a consolidated ordinary profit margin of 19.5% for FY2025, compensation for executive directors was applied specifically at 51% for the fixed component and 49% for the performance-based component. - FY2022ReframedAnnual report
「The performance-based component is an incentive to achieve the Company’s management indicator of a consolidated ordinary profit margin of 10% or higher, promote the sustainable enhancement of corporate value, and share value with shareholders. It is determined based on the consolidated ordinary profit margin for the previous fiscal year and the individual’s contribution to performance, and is paid as monetary compensation and restricted stock compensation.」
While maintaining the policy of basing performance-based compensation on the consolidated ordinary profit margin, the Company specified a system under which the performance-based component is paid as monetary compensation and restricted stock compensation. - FY2021RestatedAnnual report
「The performance-based component is an incentive to achieve the Company’s management indicator of a consolidated ordinary profit margin of 10% or higher, and is determined based on the consolidated ordinary profit margin for the previous fiscal year and the individual’s contribution to performance.」
The policy of using the consolidated ordinary profit margin as an indicator for performance-based compensation for executive directors continues. The Company states that the proportions of the fixed and performance-based components vary depending on the amount paid as the performance-based component. - FY2019First statedAnnual report
「Performance-based compensation is based on the consolidated ordinary profit margin stated in “2. Business Conditions, 1. Management Policy, Business Environment and Issues to Be Addressed, (2) Target Management Indicators,” which is a management policy. Depending on the consolidated ordinary profit margin, it ranges from approximately 0% to 175% of fixed compensation.」
The Company disclosed a system under which performance-based compensation for executive directors is based on the consolidated ordinary profit margin and ranges from approximately 0% to 175% of fixed compensation. The consolidated ordinary profit margin for the fiscal year was 7.3%, below the target of 10% or higher.