Performance-Linked Executive Compensation Centered on Ordinary Profit
First written in FY2019. 4 of 10 entries say "Advanced", first in FY2025. Latest entry: 2026-10-22.
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
13 other companies' latest entry also says "Achieved".
- FY2026Proposal submitted to allow the delivery of shares when RSUs vestAnnual report
「As it is considered desirable to further improve the convenience of the share-based compensation plan, we propose to allow eligible directors, when their RSUs vest, to receive not only a cash payment but also delivery of the company's common shares, including a combination of a cash payment for part and delivery of the company's common shares for the remainder.」
While continuing to use net income as the primary indicator, the company submitted to the general meeting of shareholders a proposal to revise the RSU plan to allow delivery of common shares in addition to a cash payment when RSUs vest. - 2026-08-27AdvancedGeneral Meetings of Shareholders
「As a method of settling the rights of eligible directors when their RSUs vest, we would like to permit not only cash payments but also the delivery of the company's common shares, including a combination in which part is paid in cash and the remainder delivered in common shares.」
Proposed revising the RSU program introduced in September 2025 so that, upon vesting, eligible directors may choose delivery of common shares or a combination of shares and cash instead of cash payments only. The limits on total compensation and the number of shares will not change. - FY2025AdvancedAnnual report
「Net income is used as the primary indicator of company performance, as it is considered to better reflect the results of operations for each fiscal year.」
The policy of using net income as the primary indicator for performance-linked compensation remains in place. At a board meeting held on 27 June 2025, the company resolved to introduce a restricted stock unit (RSU) plan and revise its restricted stock compensation plan. The resolutions are subject to shareholder approval. - FY2024Change in the primary performance-linked compensation indicator from ordinary income to net incomeAnnual report
「Net income is used as the primary indicator of company performance, as it is considered to better reflect the results of operations for each fiscal year.」
The compensation policy was changed from one based primarily on ordinary income to one based primarily on net income. The non-monetary compensation structure using restricted stock remains in place. - FY2023RestatedAnnual report
「Ordinary income is used as the primary indicator of company performance, as it is considered to better reflect the results of operations for each fiscal year. Compensation is set according to each individual's position and responsibilities, taking into account the growth rate of ordinary income and the degree of achievement against targets, and the final amount is determined after considering each director's contribution to management. Non-monetary compensation consists of restricted stock, with the aim of promoting value sharing with shareholders and providing an incentive for directors to sustainably enhance corporate value.」
The company continues to provide performance-linked compensation based primarily on ordinary income and non-monetary compensation in the form of restricted stock. During the fiscal year, it recorded ¥918 million in performance-linked compensation and ¥57 million in non-monetary compensation for directors. - FY2021Specification of the director compensation structureAnnual report
「Ordinary income is used as the primary indicator of company performance, as it is considered to better reflect the results of operations for each fiscal year. Compensation is set according to each individual's position and responsibilities, taking into account the growth rate of ordinary income and the degree of achievement against targets, and the final amount is determined after considering each director's contribution to management. Non-monetary compensation consists of restricted stock, with the aim of promoting value sharing with shareholders and providing an incentive for directors to sustainably enhance corporate value.」
While maintaining the policy of performance-linked compensation based primarily on ordinary income, the company specified a structure under which restricted stock is provided as non-monetary compensation and stated that the stock option plan is scheduled to be abolished. - FY2020RestatedAnnual report
「Ordinary income is used as the primary indicator of company performance, as it is considered to better reflect the results of operations for the fiscal year. Compensation is set according to each individual's position and responsibilities, taking into account the growth rate of ordinary income and the degree of achievement against targets, with the final amount determined after considering the individual's contribution to the company.」
The policy of providing performance-linked director compensation based on the growth rate of ordinary income, achievement of targets and individual contribution remains in place. - FY2019First statedAnnual report
「Ordinary income is used as the primary indicator of company performance, as it is considered to better reflect the results of operations for the fiscal year. Compensation is set according to each individual's position and responsibilities, taking into account the growth rate of ordinary income and the degree of achievement against targets, with the final amount determined after considering the individual's contribution to the company.」
The method for determining performance-linked compensation, including bonuses and stock options, based on the growth rate of ordinary income, achievement of targets and individual contribution was disclosed.