Strengthening Compensation Governance Through the Introduction of Performance-Based Compensation
First written in FY2024. 1 of 2 entries say "Advanced", first in FY2025. Latest entry: FY2025.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2025AdvancedAnnual report
「To provide directors with incentives to achieve sustainable growth in the Company’s corporate value and to promote greater value sharing with shareholders, the Nomination and Compensation Advisory Committee decided to introduce a restricted stock compensation plan for directors other than outside directors. Following submission of the proposal to the Board of Directors, the Board resolved at its meeting held on 20 November 2025 to submit the proposal to the 71st Annual General Meeting of Shareholders scheduled for 23 December 2025.」
In addition to recording ¥20.4 million in performance-linked compensation for the fiscal year, the Company advanced to the stage of submitting to the General Meeting of Shareholders a restricted stock compensation plan for directors other than non-executive directors. - FY2024First statedAnnual report
「In addition to fixed compensation, the Company decided to introduce performance-linked compensation. The proposal was submitted by the Board of Directors and approved at the Board meeting held on 21 November 2023. The policy is to pay performance-linked compensation in cash annually based on the degree of achievement of management targets and other performance-linked indicators set out in the medium-term management plan. Performance-linked compensation is expected to account for approximately 10%–30% of each officer's total compensation, depending on achievement.」
The compensation structure, reviewed by the Nomination and Compensation Advisory Committee and approved by the Board of Directors, adds performance-linked compensation tied to achievement of the medium-term management plan's KPIs, representing approximately 10%–30% of total compensation.