Executive Incentive Design Using Performance-Linked and Equity Compensation
First written in FY2022. 4 of 5 entries say "Advanced", first in FY2023-Q2. Latest entry: FY2025-H1.
- FY2025-H1AdvancedAnnual report
「(Sixth Series of New Share Acquisition Rights) 18 July 2024 Board of Directors resolution Company directors 4 people Company executive officers 3 people Company and subsidiary employees 48 people Number of new share acquisition rights (units)* 49,600 (Note 1) Exercise period for new share acquisition rights* 21 August 2027 to 21 August 2034」
The Company granted 49,600 sixth-series new share acquisition rights to directors, executive officers, and employees of the Company and its subsidiaries, implementing an equity-based incentive structure. - FY2024-Q3AdvancedAnnual report
「(Fifth Series of New Share Acquisition Rights) 17 October 2023 Board of Directors resolution Category and number of grantees (people) Company employees 27 Number of new share acquisition rights (units)* 42,000」
The Company granted 42,000 fifth-series new share acquisition rights to 27 employees, implementing a specific incentive structure based on performance-linked and equity-based compensation. - FY2023AdvancedAnnual report
「A Nomination and Compensation Committee was established on 28 March 2023.」
A Nomination and Compensation Committee was established to deliberate on the appointment of directors and executive officers, performance evaluations, compensation systems and other matters, and held 5 meetings after its establishment. It specifies the process for determining performance-linked and equity-based compensation. - FY2023-Q2AdvancedAnnual report
「Each holder of the new share acquisition rights may exercise the rights up to the number calculated by multiplying the number of rights allocated to that holder by the applicable percentage specified below (the “Exercisable Percentage”), provided that consolidated revenue and adjusted EBITDA in the Company’s consolidated income statement meet the criteria set out below.」
For the fourth series of new share acquisition rights, it specifies performance-linked conditions based on consolidated revenue and adjusted EBITDA. It also discloses the grant of 154,000 rights to 10 officers and 3 employees. - FY2022First statedAnnual report
「The compensation structure for directors, excluding directors who are Audit and Supervisory Committee members, consists of base compensation, short-term incentive compensation (performance-linked compensation), and long-term incentive compensation (stock options and restricted shares), with the aim of increasing the proportions of compensation linked to medium- to long-term performance and equity-based compensation, thereby providing directors with incentives to achieve the sustainable growth of the Group and sustained increases in corporate value over the medium to long term, while promptly promoting the sharing of value with shareholders.」
It specifies a compensation policy combining base compensation with short-term compensation linked to consolidated revenue and consolidated gross profit, and long-term compensation consisting of stock options and restricted shares.