Directors’ Bonuses Based on Consolidated Operating Profit
First written in FY2017. 6 of 15 entries say "Reframed", first in FY2020. Latest entry: 2026-06-18.
The whole theme swung hardest in 2020: 5 of 26 companies on the "Worse" side.
18 other companies' latest entry also says "Advanced".
- 2026-06-18AdvancedShare Issuance and Disposal
「At today's shareholders meeting, the proposal concerning this plan was approved as originally proposed. Accordingly, as announced in the 22 May 2026 notice regarding the introduction of a trust-type share-based compensation plan and the disposal of treasury shares in connection with its introduction, we will proceed with this disposal of treasury shares.」
The trust-type share-based compensation plan has progressed from the conditional stage of a board resolution and shareholders meeting approval to the implementation stage, with the disposal of treasury shares following approval at the shareholders meeting. - FY2026ReframedAnnual report
「The Company has proposed, as an agenda item for approval at the Annual General Meeting of Shareholders scheduled for 18 June 2026, the "Introduction of a trust-type share-based compensation plan for directors (excluding non-executive and outside directors)."」
The Company has proposed transitioning from its former restricted stock compensation to a trust-type share-based compensation plan. The reference plan presents a framework incorporating ROE, TSR, employee engagement, and sustainability assessments as metrics for share-based compensation. - FY2025AdvancedAnnual report
「Metric; evaluation weighting; actual result: consolidated operating profit, 60%, ¥519.0 billion; ROIC, 20%, 7.1%; sustainability assessment, 20%, 3 of 5 items」
Under the executive compensation system, consolidated operating profit, ROIC, and sustainability assessment are weighted at 60%, 20%, and 20%, respectively, and the Company disclosed the actual results for the fiscal year. - FY2024RaisedAnnual report
「Consolidated operating profit: 70%; ROIC: 20%; sustainability assessment: 10%; consolidated operating profit: 60%; ROIC: 20%; sustainability assessment: 20%; total share-based compensation: up to ¥200 million per year; up to ¥1.5 billion per year」
Under the executive compensation system, the Company increased the weighting of the sustainability assessment from 10% to 20%, raised the annual limit for share-based compensation from ¥200 million to ¥1.5 billion, and increased the number of shares from 100,000 to 3 million per year. - FY2023AdvancedAnnual report
「Fixed compensation: base compensation, paid as a fixed monthly amount according to position, 40%, 45%, 50%; bonuses (short-term incentives), 30%, 30%, 30%; share-based compensation (medium- to long-term incentives), 30%, 25%, 20%」
The Company operated the executive compensation system revised in the previous fiscal year and disclosed the proportions of base compensation, bonuses, and share-based compensation by position. The performance-linked metrics were consolidated operating profit at 70%, ROIC at 20%, and sustainability assessment at 10%; actual results were operating profit of ¥426.1 billion, ROIC of 6.1%, and achievement of 5 of 8 priority issues. - FY2022ReframedAnnual report
「To strengthen incentives to improve company performance and promote greater value sharing with shareholders, the Company reduced the proportion of base compensation, which had previously accounted for approximately 60% of total compensation, and increased the proportion of share-based compensation. To enhance corporate value by strengthening profitability and promoting sustainability management, the Company added ROIC and a sustainability assessment to the company performance metrics for performance-linked compensation. It also changed the consolidated operating profit benchmark from the former fixed amount of ¥320 billion to the annual target for the fiscal year under review. To increase motivation to deliver individual results, the Company expanded the portion of compensation reflected in individual assessments, which had previously been limited to a range of ±10% of total compensation.」
The Company reorganized its executive compensation system from one centered on base compensation and operating-profit-linked bonuses to one incorporating a higher proportion of share-based compensation, the addition of ROIC and sustainability assessments, linkage to annual targets, and a wider range for individual assessments. - FY2021AdvancedAnnual report
「The compensation system for the Company's directors, excluding non-executive and outside directors (the "eligible directors"), consists of (i) base compensation (fixed amount), (ii) bonuses (short-term incentives), and (iii) share-based compensation (medium- to long-term incentives based on a resolution adopted at the 97th Annual General Meeting of Shareholders held on 19 June 2020), with the proportions approximately 60%, 30%, and 10%, respectively.」
In addition to the former operating-profit-linked bonuses, the Company operates a three-tier compensation structure consisting of base compensation, bonuses, and share-based compensation, and discloses approximate proportions of 60%, 30%, and 10%, respectively. - FY2020ReframedAnnual report
「The compensation system for the Company's directors, excluding non-executive and outside directors (the "eligible directors"), consists of (i) base compensation (fixed amount), (ii) bonuses (short-term incentives), and (iii) share-based compensation (medium- to long-term incentives based on a resolution adopted at the 97th Annual General Meeting of Shareholders held on 19 June 2020), with the proportions approximately 60%, 30%, and 10%, respectively.」
In addition to a bonus policy based on consolidated operating profit, the Company introduced share-based compensation and reorganized its compensation system into base compensation, bonuses, and share-based compensation. - FY2019RestatedAnnual report
「Bonus amounts are determined based on a bonus table tied to consolidated operating profit, taking comprehensive account of employee bonus levels, dividends, trends at other companies, medium- to long-term performance, and past bonus payments. The actual result for the performance-linked compensation metric, consolidated operating profit, was ¥316.2 billion in the fiscal year under review.」
The Company has reconfirmed its policy of linking executive bonuses to consolidated operating profit and other factors, and disclosed consolidated operating profit of ¥316.2 billion for the fiscal year under review. - FY2018RestatedAnnual report
「In particular, bonuses are determined based on consolidated operating profit for each period, taking comprehensive account of dividends, employee bonus levels, trends at other companies, medium- to long-term performance, and past bonus payments.」
The Company has reconfirmed its policy of linking executive bonuses to consolidated operating profit, dividends, employee bonus levels, and medium- to long-term performance, among other factors. - FY2017First statedAnnual report
「The compensation structure is designed to align with the Company's performance and reflect responsibilities and results. In particular, bonuses are determined based on consolidated operating profit for each period, taking comprehensive account of dividends, employee bonus levels, trends at other companies, medium- to long-term performance, and the Company's past bonus payments.」
The policy of calculating directors' bonuses based on consolidated operating profit and other factors has been identified as a theme for the first time.