Sharing Value with Shareholders Through Performance-Linked Stock Compensation
First written in FY2022. 1 of 3 entries say "Advanced", first in FY2023. Latest entry: FY2024.
Kawasaki Heavy Industries moved to the "Worse" side of this theme in 2024.
The whole theme swung hardest in 2025: 4 of 19 companies on the "Worse" side.
1 other company's latest entry also says "Reframed".
- FY2024ReframedAnnual report
「“Long-term incentive compensation” uses a share delivery trust. In principle, when a director leaves office, the Company delivers its shares and pays cash equivalent to the proceeds from the sale of the Company’s shares based on points awarded according to the director’s period in office (the fixed allocation component), as well as points awarded according to each eligible director’s achievement of targets, ESG indicators (CO2 reductions and third-party assessments) and share-price indicators (the performance component).」
Following the revision of the compensation policy in May 2024, the performance component of long-term incentives was restructured from a system centered on target achievement to one incorporating CO2 reductions, third-party assessments and share-price indicators. The compensation mix was also changed to approximately 33.3% each for fixed, short-term and long-term compensation, effective from July 2025. - FY2023AdvancedAnnual report
「Under the share delivery rules established by the Board of Directors, the Company awards each director points based on their position, the degree to which performance targets have been achieved and other factors, on the point award dates specified in the share delivery rules during the trust period.」
For the performance-linked share-based compensation plan, the Company disclosed its operation covering executive officers in addition to directors, the awarding of points based on the degree to which performance targets have been achieved, and the trust period from August 2021 to August 2024. - FY2022First statedAnnual report
「The purpose of this plan is to clarify the linkage between compensation and the Company’s performance and shareholder value, enabling directors to share with shareholders and other stakeholders the benefits and risks arising from fluctuations in the share price, and to heighten their awareness of contributing to improved performance over the medium to long term and increased corporate value.」
For the performance-linked share-based compensation plan approved in June 2021 and placed in trust in August, the Company disclosed specific details including the covered period, the maximum number of points and the maximum trust contribution of ¥975 million.