Performance-linked executive remuneration based on performance metrics
First written in FY2019. 3 of 8 entries say "Advanced", first in FY2023. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 117 companies on the "Worse" side.
- FY2026ReframedAnnual report
「Evaluation perspectives: Financial metrics: linkage to annual performance targets: 30%; operating profit: 30%; EBITDA: 10%; ROIC. Strategic metrics: linkage to medium- to long-term strategic metrics and enhancement of social value: 10%; transformation metrics: 10%; orders received for electrified vehicles: 10%; achievement of ESG metrics」
The performance-linked executive remuneration metrics were reorganized around operating profit, EBITDA, ROIC, transformation, orders received for electrified vehicles, and ESG. From fiscal 2025, actual figures for ROIC and other metrics have not been disclosed for reasons related to sales policy and competitive strategy. - FY2025AdvancedAnnual report
「The achievement ratios against the fiscal 2023 targets were 26% for new business revenue and 118% for the proportion of products for electrified vehicles. For the ESG metric, the target was an 11% reduction from fiscal 2018, compared with an actual reduction of 8%, attributable to energy-saving measures, the introduction of renewable energy, and the impact of production volume.」
For performance-linked executive remuneration, the company specifically discloses the targets and results for new business revenue, the proportion of products for electrified vehicles, and CO2 reduction, and is advancing an evaluation process based on strategic and ESG metrics. - FY2024AdvancedAnnual report
「Evaluation items: Financial metrics: 20%; net sales: 20%; operating profit: 30%; EBITDA. Strategic metrics: 10%; new business revenue: 10%; proportion of products for electrified vehicles: 10%; achievement of ESG metrics」
For performance-linked executive remuneration, the company discloses the weighting of financial and strategic metrics and specifies an evaluation framework that includes new businesses, electrified vehicles, and ESG. - FY2023AdvancedAnnual report
「As financial metrics, the company uses the likelihood of achieving net sales, operating profit, and EBITDA against the initial budget, while as strategic metrics it uses the likelihood of achieving, or achievement of, new business revenue, the proportion of products for electrified vehicles, and ESG metrics, including the reduction rate in CO2 emissions from fiscal 2018.」
For performance-linked remuneration, the company specifically discloses the evaluation items and results, including new business revenue, the proportion of products for electrified vehicles, and CO2 reduction, in addition to financial metrics. - FY2022RestatedAnnual report
「Performance-linked remuneration is paid as a cash bonus each year at a specified time, with the amount calculated based on the evaluation of the company’s performance and the achievement of its performance targets and medium- to long-term strategic metrics.」
The company continues its policy of linking executive remuneration to the achievement of annual performance targets and medium- to long-term strategic metrics. In addition to financial metrics, the evaluation items include new business revenue, the proportion of products for electrified vehicles, and achievement of ESG metrics. - FY2021ReframedAnnual report
「Performance-linked remuneration is paid as a cash bonus each year at a specified time, with the amount calculated based on the achievement of the company’s annual performance targets and medium- to long-term strategic metrics.」
The performance-linked remuneration metrics were changed from the former rate of change in net sales, operating margin, ROE, ROA, dependence on borrowings, and relative industry evaluation to annual and medium- to long-term evaluations based on net sales, operating profit, EBITDA, new business revenue, the proportion of products for electrified vehicles, and achievement of ESG metrics. - FY2020RestatedAnnual report
「To ensure the growth, profitability, efficiency, and financial soundness of the company, performance is evaluated using the group’s key performance indicators: the rate of change in net sales, operating margin, ROE, ROA, and dependence on borrowings, with calculations based on coefficients determined by the Board of Directors.」
The company continues to operate a performance-linked executive remuneration system using the rate of change in net sales, operating margin, ROE, ROA, and dependence on borrowings. - FY2019First statedAnnual report
「The group has selected the rate of change in net sales, operating margin, ROE, ROA, and dependence on borrowings as key performance indicators, and calculates remuneration based on coefficients determined by the Board of Directors.」
The policy of calculating executive performance bonuses using metrics such as the rate of change in net sales, operating margin, ROE, ROA, and dependence on borrowings was explicitly stated for the first time.