Executive Compensation Program Linked to Business Performance and Growth in Shareholder Value
First written in FY2020. . Latest entry: FY2025.
- FY2025Reduction in executive compensation and nonpayment of bonusesAnnual report
「The actual result for the relevant metric was a consolidated operating loss of ¥179 million, and the Board of Directors decided not to pay executive bonuses for the current fiscal year. In addition, it was decided to reduce the compensation of the representative director by 50% and that of directors other than Audit and Supervisory Committee members, excluding outside directors, by 20%, from January 2025 until further notice.」
Under the performance-linked compensation system, executive bonuses were not paid in light of the consolidated operating loss of ¥179 million, and reductions in the compensation of the representative director and others were also decided. - FY2024Nonpayment of executive bonuses despite a return to operating profitAnnual report
「The actual result for the relevant metric was consolidated operating profit of ¥216 million, and the Board of Directors decided not to pay executive bonuses for the current fiscal year.」
The compensation structure linked to business performance and the enhancement of shareholder value continues. Consolidated operating profit improved from an operating loss of ¥314 million in the previous year to ¥216 million, but it was decided that executive bonuses would not be paid for the current fiscal year. - FY2023Nonpayment of executive bonuses due to an operating lossAnnual report
「The actual result for the relevant metric was a consolidated operating loss of ¥314 million, and the Board of Directors decided not to pay executive bonuses for the current fiscal year.」
The executive compensation structure linked to business performance and the enhancement of shareholder value has been maintained, but in light of the consolidated operating loss of ¥314 million, executive bonuses were again not paid for the current fiscal year. - FY2022Continued nonpayment of executive bonuses at the current level of business performanceAnnual report
「The actual result for the relevant metric was consolidated operating profit of ¥70 million, and the Board of Directors decided not to pay executive bonuses for the current fiscal year.」
The performance-linked executive compensation system continues, but it was decided that executive bonuses would not be paid again for the current fiscal year in light of consolidated operating profit of ¥70 million. - FY2021Nonpayment of executive bonuses due to deteriorating business performanceAnnual report
「The actual result for the relevant metric was consolidated operating profit of ¥3 million, and the Board of Directors decided not to pay executive bonuses for the current fiscal year.」
The operating-profit-linked executive compensation system continues, but it was decided that no executive bonuses would be paid for the current fiscal year because consolidated operating profit was ¥3 million. - FY2020First statedAnnual report
「The company's executive compensation program consists of base compensation (cash compensation), which enables executives to devote themselves to their duties and fulfill their responsibilities as managers, and incentives for improving business performance and shareholder value. The incentives comprise executive bonuses based on consolidated operating profit for the consolidated fiscal year, paid stock options based on medium-term growth in consolidated operating profit, and restricted stock compensation to motivate executives to enhance share value throughout their term of office.」
For the first time, a comprehensive compensation structure was disclosed, combining base compensation with executive bonuses linked to annual operating profit, paid stock options based on medium-term growth in operating profit, and restricted stock compensation to promote higher share value throughout the term of office.