Performance-Linked Compensation for Executive Directors and Ownership of Company Shares
First written in FY2019. 5 of 9 entries say "Advanced", first in FY2023. Latest entry: 2026-07-24.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026The evaluation metrics for executive bonuses changed to materiality KPIs.Annual report
「At a Board of Directors meeting held on 10 March 2026, a resolution was passed to make the following changes. The non-financial metrics are KPIs established for the following materialities: ① strengthening corporate governance, ② diversity and engagement of human resources, ③ contribution to the global environment and society, including CO2 emissions reductions, and ④ qualitative growth of the Group. The KPIs are determined taking into account net income attributable to owners of the parent, the total payout ratio and other factors.」
The non-financial evaluation criteria for executive bonuses changed specifically from the previous criteria of CO2 emissions reductions and human capital initiatives to KPIs established for 4 materialities. - 2026-05-25ReframedGeneral Meetings of Shareholders
「The principal reference indicators for director bonuses comprise financial indicators, including net sales, operating margin and ROE, and KPIs established for the following materiality areas as non-financial indicators: 1) strengthening corporate governance, 2) diversity and activation of human resources, 3) contributions to the global environment and society, including CO2 emissions reductions, and 4) qualitative growth of the Group. Bonuses are determined by taking into account net income attributable to owners of the parent, the total payout ratio and other factors.」
The non-financial indicators for performance-linked compensation were reorganized to include KPIs established for four materiality areas, rather than the previous focus on human capital initiatives and other factors. - FY2025The evaluation metrics for executive bonuses were expanded to include financial and non-financial metrics, and the decision-making authority changed to the Board of Directors.Annual report
「The financial metrics are revenue, operating profit margin and ROE, while the non-financial metrics are the reduction in CO2 emissions and targets for initiatives related to the human capital strategy. These are determined taking into account net income attributable to owners of the parent, the total payout ratio and other factors. The authority to determine the individual compensation amounts of directors changed from delegation to the Representative Director to determination by the Board of Directors.」
The evaluation criteria for executive bonuses changed from a focus on profit attributable to owners of the parent and annual dividends to a framework including revenue, operating profit margin and ROE under the medium-term management plan, CO2 emissions reductions and human resources initiatives. The authority to determine individual compensation also changed to the Board of Directors. - FY2024AdvancedAnnual report
「For the fiscal year, compensation and other remuneration for directors, excluding directors who are Audit and Supervisory Committee members, comprised ¥243 million in fixed compensation, ¥140 million in performance-linked compensation and ¥28 million in non-monetary compensation and other remuneration.」
In addition to performance-linked compensation, non-monetary compensation, including restricted stock compensation, continued to be provided, and the amount recorded as an expense for the fiscal year was specified. - FY2023AdvancedAnnual report
「For the fiscal year, compensation and other remuneration for directors, excluding directors who are Audit and Supervisory Committee members, comprised ¥243 million in fixed compensation, ¥111 million in performance-linked compensation and ¥22 million in non-monetary compensation and other remuneration.」
In addition to the performance-linked compensation previously disclosed, restricted stock compensation was provided as non-monetary compensation, with ¥22 million recorded as an expense for the fiscal year. - FY2020Actual payment of directors' bonuses disclosedAnnual report
「Regarding directors' bonuses for the current fiscal year, the 118th annual general meeting of shareholders held on 26 June 2020 approved a total amount of ¥75.4 million. The payment of bonuses to the eligible directors, namely the 7 directors as of the end of the current fiscal year excluding directors who are Audit and Supervisory Committee members, was determined by the Board of Directors.」
While medium- to long-term performance-linked compensation and share-based compensation had not been introduced, the company disclosed the total amount and number of recipients of directors' bonuses, for which net income attributable to owners of the parent and annual dividends are used as reference indicators. - FY2019First statedAnnual report
「Compensation and other remuneration for executive directors will be determined after taking into account the proportions of fixed compensation and performance-linked compensation, including directors' bonuses. The appropriate proportions of cash compensation and share-based compensation will also be considered. As of the end of the current fiscal year, we had not introduced compensation linked to medium- to long-term performance or share-based compensation, but all executive directors purchase and hold shares of the company through the directors' shareholding association.」
The company has stated a policy of combining fixed and performance-linked compensation for executive directors, but as of the end of the current fiscal year had not introduced medium- to long-term performance-linked compensation or share-based compensation. Executive directors hold company shares through the directors' shareholding association.