Executive Compensation Design Combining Fixed, Performance-Linked and Equity Compensation
First written in FY2021. 3 of 5 entries say "Advanced", first in FY2023-Q1. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「The number of points granted to directors, excluding outside directors, as non-monetary compensation and other benefits (BBT) for the fiscal year was 121,520 points.」
The company disclosed the actual number of BBT points granted during the fiscal year under the structure combining fixed compensation, short-term performance-linked compensation and BBT. - FY2023AdvancedAnnual report
「The number of points granted to directors, excluding outside directors, as non-monetary compensation and other benefits (BBT) for the fiscal year was 28,024 points. The basis for the grant was the amount calculated by multiplying the number of points granted during the fiscal year by the book value per share of the Company's common shares held by the trust.」
The compensation structure combining fixed compensation, short-term performance-linked compensation and BBT became more concrete through the grant of 28,024 BBT points during the fiscal year. - FY2023-Q1AdvancedAnnual report
「In connection with the introduction of the Stock Benefit Trust (BBT (Board Benefit Trust)), announced on 11 May 2022, and the additional contribution to the Stock Benefit Trust (J-ESOP), we resolved at a Board of Directors meeting held on 11 July 2022 to dispose of treasury shares through a third-party allotment, and carried out the disposal of treasury shares on 27 July 2022.」
The executive compensation policy was restructured from a stock option compensation framework to a stock delivery trust. Following the introduction of BBT and an additional contribution to J-ESOP, treasury shares were disposed of and the operation of the plans became more concrete. - FY2022ReframedAnnual report
「Non-monetary compensation and other benefits are provided through a stock delivery trust arrangement, under which points are granted based on factors including the degree of achievement against the targets for the final year of the medium-term management plan, in accordance with the Officer Stock Delivery Regulations. The targets for the 9th medium-term management plan, covering the 55th through 57th fiscal years, are ordinary profit of ¥6.5 billion and ROE of 7.5–8.5%.」
The non-monetary component of executive compensation has been restructured from a stock option-centered design into a stock delivery trust linked to the degree of performance achievement and the ordinary profit and ROE targets under the 9th medium-term management plan. - FY2021First statedAnnual report
「For directors, the basic amount is calculated by dividing compensation into fixed and performance-linked components. To ensure objectivity and transparency, the amounts are reviewed by the voluntary Executive Personnel Committee, a majority of whose members are outside directors serving as independent officers, and determined by the representative director, who has been delegated authority by the Board of Directors, within the total amount approved at the General Meeting of Shareholders. ... The compensation structure is designed so that, on average across each position, fixed compensation, performance-linked compensation and non-monetary compensation account for approximately 50%, 25% and 25%, respectively.」
The executive compensation structure combining fixed compensation, performance-linked compensation tied to ordinary profit and ROE, and stock option-based compensation was presented for the first time in a consolidated format, including a review process by the Executive Personnel Committee, which includes independent outside directors.