Executive director compensation linked to net income
First written in FY2021. 3 of 5 entries say "Advanced", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
15 other companies' latest entry also says "Raised".
- FY2026RaisedAnnual report
「The numerical target for the fiscal year is consolidated ordinary profit of ¥3,400 million. Whether this target has been achieved will be determined based on the figures for the relevant fiscal year in the consolidated financial statements reported to the Annual General Meeting of Shareholders under the Companies Act after the evaluation period ends.」
The PSU numerical target was raised from the previously stated consolidated ordinary profit of ¥2,600 million to ¥3,400 million. - FY2024AdvancedAnnual report
「Non-monetary compensation and other compensation is provided to directors, excluding outside directors, in the form of post-evaluation performance share units (PSUs), which are non-monetary compensation linked to the share price and performance over the medium to long term, based on achievement during the evaluation period. This is intended to align interests with shareholders and encourage contributions to the medium- to long-term enhancement of corporate and shareholder value. The initial numerical target is consolidated ordinary profit of ¥2.6 billion. Whether this target has been achieved will be determined based on the figures in the consolidated financial statements for the fiscal year corresponding to the evaluation period, which are reported to the Ordinary General Meeting of Shareholders under the Companies Act after the evaluation period ends.」
In addition to the existing cash compensation linked to net income, non-monetary compensation through PSUs and a numerical target of consolidated ordinary profit of ¥2.6 billion were introduced. - FY2023AdvancedAnnual report
「Performance-linked compensation and other compensation consists of cash compensation linked to performance in each fiscal year, to raise awareness of improving performance each year. An amount calculated based on the company’s standalone and consolidated net income for each fiscal year, taking into account the executive director’s responsibilities and contribution, is paid as a bonus at a fixed time each year.」
The policy of performance-linked compensation based on net income continues, and ¥33 million in performance-linked compensation was recorded for 7 directors during the fiscal year under review. - FY2022AdvancedAnnual report
「Performance-linked compensation and other compensation consists of cash compensation linked to performance in each fiscal year, to raise awareness of improving performance each year. An amount calculated based on the company’s standalone and consolidated net income for each fiscal year, taking into account the executive director’s responsibilities and contribution, is paid as a bonus at a fixed time each year.」
The calculation and payment policy for performance-linked compensation based on net income has been specified, and ¥25 million in performance-linked compensation was recorded as director compensation for the fiscal year under review. - FY2021First statedAnnual report
「Performance-linked compensation and other compensation consists of cash compensation linked to performance in each fiscal year, to raise awareness of improving performance each year. An amount calculated based on the company’s standalone and consolidated net income for each fiscal year, taking into account the executive director’s responsibilities and contribution, is paid as a bonus at a fixed time each year.」
The policy for performance-linked compensation for executive directors has been explicitly stated for the first time: bonuses are calculated based on standalone and consolidated net income, taking into account responsibilities and contributions.