Introduction of Performance-Linked Compensation
First written in FY2019. 8 of 10 entries say "Advanced", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「Of the decrease of 312 thousand shares, 0 thousand shares resulted from requests for additional purchases, 186 thousand shares resulted from grants of shares through the employee stock ownership plan in connection with the 10th anniversary of the company's founding, and 126 thousand shares resulted from benefits paid from the Board Benefit Trust upon the retirement of eligible officers.」
Under the Board Benefit Trust, 126 thousand shares were paid to retiring officers, and shares were also granted through the employee stock ownership plan as part of the company's 10th-anniversary celebration. - FY2026-H1AdvancedAnnual report
「The decrease of 124 thousand shares resulted from benefits paid upon the retirement of eligible officers.」
Under the Board Benefit Trust (BBT), 124 thousand shares were paid as benefits upon the retirement of eligible officers, reducing the shares held by the trust from 764 thousand to 639 thousand. - FY2025AdvancedAnnual report
「The amount of consolidated net income for the fiscal year is as stated under "Profit attributable to owners of parent" in Part I (Corporate Information), Section 1 (Overview of the Company), 1 (Key Financial and Operating Indicators).」
For performance-linked compensation, a one-time bonus of ¥28 million corresponding to consolidated net income of ¥30,368 million in fiscal 2024 was recorded. In addition, 35,800 shares were paid to retiring officers under the Board Benefit Trust. - FY2025-H1AdvancedAnnual report
「Treasury shares Common shares 30,764 0 35 30,729 (Note) (注) Of the common shares held as treasury shares at the end of the current interim consolidated accounting period, 764 thousand shares are the company's shares held by the Board Benefit Trust (BBT). Of the decrease of 35 thousand shares, 0 thousand shares resulted from requests for additional purchases, and 35 thousand shares resulted from benefits paid upon the retirement of eligible officers.」
Under the Board Benefit Trust (BBT), 35 thousand shares were paid as benefits upon the retirement of eligible officers, reducing the shares held by the trust from 800 thousand to 764 thousand. The disclosure shows that the scheme had progressed to the actual benefit payment stage. - FY2024-Q2AdvancedAnnual report
「Beginning with the current interim consolidated accounting period, we introduced a Board Benefit Trust (BBT) to more clearly link the compensation of the company's directors, executive officers and the directors and executive officers of its subsidiaries, Higo Bank and Kagoshima Bank, with the value of the company's shares. The eligible officers are intended to share with shareholders not only the benefits of a rising share price but also the risk of a decline, thereby strengthening their awareness of contributing to improved performance and increased corporate value over the medium to long term. Directors serving on the Audit and Supervisory Committee, outside directors and non-executive directors are excluded.」
The performance-linked compensation scheme, including the stock-based compensation previously disclosed, was introduced as a Board Benefit Trust beginning with the current interim consolidated accounting period. The trust held 800 thousand shares, with a carrying amount of ¥544 million. - FY2023AdvancedAnnual report
「Compensation for directors other than those serving as Audit and Supervisory Committee members, excluding non-executive directors and outside directors, consists of basic compensation as fixed compensation, a one-time bonus based on short-term performance, and stock-based compensation linked to medium- to long-term growth in corporate value. Approximately 75% consists of basic compensation, 15% of the one-time bonus, and 10% of stock-based compensation.」
The performance-linked compensation structure was specified to include a one-time bonus based on the degree of achievement of the consolidated net income target, as well as stock-based compensation linked to medium- to long-term corporate value. - FY2020AdvancedAnnual report
「A. The performance-linked compensation component will account for 20% of the total annual compensation framework paid to members of management eligible for performance-linked compensation, as a percentage of basic compensation (monthly compensation). B. The performance-linked compensation payout rate will be determined based on the achievement rate against the annual target in the Second Group Medium-Term Management Plan, using consolidated net income, an indicator reflecting the group's overall management performance, as the evaluation metric.」
A specific performance-linked compensation scheme was established under which the component would account for 20% of the eligible management's total annual compensation framework, with the payout rate determined by the achievement rate for consolidated net income against the annual target in the medium-term plan. - FY2019First statedAnnual report
「In July 2019, the Board of Directors resolved to introduce performance-linked compensation into the basic compensation (monthly compensation) paid to the company's representative directors, full-time directors excluding outside directors, and executive officers.」
A policy was approved to incorporate performance-linked compensation into the basic compensation of representative directors, full-time directors and executive officers from July 2019.