Sharing Value with Shareholders Through Performance-Linked Compensation
First written in FY2017. 14 of 22 entries say "Advanced", first in FY2018-Q2. Latest entry: 2026-05-29.
The whole theme swung hardest in 2020: 4 of 30 companies on the "Worse" side.
32 other companies' latest entry also says "Advanced".
- FY2025ReframedAnnual report
「Performance metric Weighting Relative TSR 60% Quality targets 30% ESG 10%」
The FY2026-PSU performance metrics were restructured as 60% relative TSR, 30% quality targets and 10% ESG, incorporating quality targets as a new major performance pillar. - FY2025AdvancedAnnual report
「Long-term incentive compensation for FY2026-LTI, covering the three-year period from the fiscal year ending March 2026 through the fiscal year ending March 2028, is as follows. To promote the objective of rewarding executive officers for their contribution to achieving the Company’s long-term performance targets and encouraging share ownership, the ratio of post-vesting restricted stock units (RSUs) to performance stock units (PSUs) was set at RSUs 40% and PSUs 60%.」
For FY2026-LTI, a plan covering the fiscal years ending March 2026 through March 2028 was established with 40% RSUs and 60% PSUs. - FY2025-H1AdvancedAnnual report
「FY2025 short-term incentive compensation (FY2025-STI) comprises financial metrics and quality targets common to all executive officers, as well as individual objectives for executive officers. As shown in the following chart, the weightings are 25% revenue, 25% operating margin, 30% quality targets and 20% individual objectives for executive officers. PSU performance metrics comprise relative TSR, quality targets and ESG metrics, with the following weightings: relative TSR 60%, quality targets 20%, ESG 20%.」
For FY2025 executive compensation, quality and individual objectives were added to STI, and PSU performance was structured to be evaluated using relative TSR at 60%, quality at 20% and ESG at 20%. - FY2024AdvancedAnnual report
「PSU performance metrics comprise relative TSR, quality targets and ESG metrics, with the following weightings: relative TSR 60%, quality targets 20%, ESG 20%.」
For FY2025-LTI, PSU performance was evaluated using relative TSR at 60%, quality at 20% and ESG at 20%. Revenue, operating margin, quality and individual objectives were also incorporated into STI. - FY2024-Q2AdvancedAnnual report
「We disposed of treasury shares under the post-vesting restricted stock compensation and performance-linked share compensation plans on 14 June 2023 and 25 July 2023. As a result, treasury shares decreased by 554,030 during the cumulative second-quarter consolidated period under review.」
With respect to share compensation under the RSU and PSU plans, a total of 554,030 treasury shares were disposed of on 14 June and 25 July 2023. - FY2024-Q1AdvancedAnnual report
「This disposal of treasury shares was conducted as share compensation for the eligible directors, executive officers and corporate officers under the RSU and PSU plans. The Company disposed of its common shares by having the entire amount of the monetary compensation claims against the Company paid in kind.」
Share compensation involving the disposal of 515,101 common shares was implemented under the RSU and PSU plans on 25 July 2023. - FY2023-Q3AdvancedAnnual report
「We disposed of treasury shares under the post-vesting restricted stock compensation and performance-linked share compensation plans on 22 July 2022 and 9 December 2022.」
For the share compensation plans, a further disposal of treasury shares was conducted on 9 December 2022, updating the cumulative treasury share disposals through FY2023-Q3. - FY2023-Q2AdvancedAnnual report
「On 22 July 2022, we disposed of treasury shares under the post-vesting restricted stock compensation and performance-linked share compensation plans.」
With respect to share compensation under the RSU and PSU plans, 87,840 treasury shares were disposed of on 22 July 2022. - FY2023-Q1AdvancedAnnual report
「This disposal of treasury shares was conducted as share compensation for the eligible directors, executive officers and corporate officers under the RSU and PSU plans. The Company disposed of its common shares by having the entire amount of the monetary compensation claims against the Company paid in kind.」
The implementation of share compensation involving the disposal of 87,840 common shares, with 22 July 2022 as the disposal date, under the RSU and PSU plans was described. - FY2022RaisedAnnual report
「Fiscal year ending March 2023 = BS:STI:LTI = 1 (19%):1.25 (24%):3 (57%).」
For FY2023 CEO compensation, the LTI weighting was increased from 50% in FY2022 to 57%, while the STI weighting was changed from 25% to 24% and base compensation from 25% to 19%. For executive officers generally, the LTI weighting was also increased from 42% to 48%. - FY2022-Q1RaisedAnnual report
「The Compensation Committee decided to increase the weighting of strategic objectives among the FY2022-STI targets, setting the following composition: revenue:operating profit:strategic objectives = 30:40:30.」
For FY2022 short-term incentive compensation, the weighting of strategic objectives was increased, resulting in a composition of 30% revenue, 40% operating profit and 30% strategic objectives. For long-term incentives, the structure was set at 40% RSUs and 60% PSUs, with Transformational FY22-RSUs also granted to the CEO and CTO. - FY2021RaisedAnnual report
「Under the new compensation structure established for the fiscal year ending March 2021, long-term incentive compensation (LTI), which constitutes non-monetary compensation, was set at 25% for post-vesting restricted stock units (RSUs) and 75% for performance stock units (PSUs). The spread of COVID-19 significantly affected initiatives in the first year of the management strategy announced in November 2019, the fiscal year ending March 2021, and increased uncertainty in the business environment for the second year, the fiscal year ending March 2022. Accordingly, the Compensation Committee discussed the RSU and PSU weighting for FY2022-LTI and changed it to 40% RSUs and 60% PSUs.」
For FY2022 long-term incentives, the RSU weighting was increased from 25% to 40%, and the PSU weighting was changed from 75% to 60%. - FY2020RaisedAnnual report
「For the CEO, the weighting of performance-linked compensation, particularly the long-term incentive, was increased. The ratios of base salary (BS), short-term incentive compensation (STI) and long-term incentive compensation (LTI) were set as follows: BS:STI:LTI = 1 (25%):1 (25%):2 (50%).」
Under the new compensation plan, the CEO’s LTI weighting was increased to 50%, and operating margin, ROIC, EPS growth, relative TSR and ESG were incorporated as performance metrics. - FY2020-Q1AdvancedAnnual report
「Pursuant to a delegation under a resolution of the Board of Directors, 61,567 new shares were issued as restricted stock compensation on 25 July 2019, based on a decision by the Representative Executive Officers dated 25 June 2019.」
61,567 new shares were issued as restricted stock compensation on 25 July 2019. - FY2019AdvancedAnnual report
「The performance-linked share compensation under the long-term incentive plan is intended to stimulate motivation to enhance medium- to long-term growth and profitability and reward the resulting performance. The performance period is three fiscal years, and the performance metrics are (1) the average revenue growth rate over the performance period and (2) the total net income attributable to owners of the parent over the performance period (hereinafter, net income).」
The operation of performance-linked share compensation for a three-year performance period, using revenue growth and total net income as performance metrics, was specified in detail. - FY2019-Q1AdvancedAnnual report
「Pursuant to a resolution of the Board of Directors held on 26 June 2018, 22,125 new shares were issued as restricted stock compensation on 26 July 2018.」
An additional 22,125 shares were issued as restricted stock compensation on 26 July 2018. - FY2018RestatedAnnual report
「We have introduced restricted stock compensation and performance-linked share compensation plans for directors, excluding outside directors, and executive officers, excluding non-residents of Japan, with the aim of increasing their awareness of their contribution to the sustainable enhancement of corporate value and promoting the sharing of value with shareholders.」
The mechanism for sharing value through restricted stock compensation and performance-linked share compensation has been reconfirmed. - FY2018-Q3RestatedAnnual report
「We have introduced restricted stock compensation and performance-linked share compensation plans for directors, excluding outside directors, and executive officers, excluding non-residents of Japan, with the aim of increasing their awareness of their contribution to the sustainable enhancement of corporate value and promoting the sharing of value with shareholders.」
The objectives and eligible recipients of the restricted stock compensation and performance-linked share compensation plans have been reconfirmed. - FY2018-Q2AdvancedAnnual report
「This involves a paid issuance of new shares for the purpose of granting restricted stock compensation.」
On 28 August 2017, 19,716 shares were issued for the purpose of granting restricted stock compensation and allocated to 5 directors and 14 executive officers. - FY2017First statedAnnual report
「Under the performance-linked share compensation component of the long-term incentive plan, a number of the Company’s common shares equivalent to an amount adjusted within a range of 0% to 150% will be delivered according to the degree of achievement of predetermined performance targets at the end of the three-year performance period.」
For a three-year performance period, net income and revenue growth were used as performance metrics, with share compensation adjusted from 0% to 150% according to the level of achievement.