Executive Compensation System Linked to Medium-Term Performance and Shareholder Value
First written in FY2018. 2 of 5 entries say "Restated". Latest entry: FY2026.
- FY2026ReframedAnnual report
「As a result, the allocation of the performance-linked component is 50% for financial targets, 20% for non-financial targets and 30% for corporate value targets.」
In line with the new medium-term management plan, the allocation for evaluating executive stock compensation changed from the previous financially focused structure to 50:20:30 for ROIC, non-financial KPIs and TSR. - FY2022ReframedAnnual report
「For evaluation metrics, the Company added categories for non-financial targets centered on sustainability and corporate value targets to the existing financial targets. The financial and non-financial targets use the management indicators set out in the medium-term management plan, while total shareholder return (TSR) is used as the indicator for corporate value targets. The impact on stock-based compensation is allocated 5:3:2 among financial targets, non-financial targets and corporate value targets.」
The evaluation structure for executive restricted stock compensation changed from financial targets alone to a 5:3:2 structure that also includes non-financial targets and TSR. - FY2020RestatedAnnual report
「Compensation for directors excluding outside directors and executive officers consists of (1) fixed compensation, (2) performance-linked bonuses and (3) restricted stock compensation, generally in a 5:3:2 ratio.」
The Company continues to combine fixed compensation, performance-linked bonuses and restricted stock compensation, linked to operating profit margin, ROE and EPS under the medium-term management plan. - FY2019RestatedAnnual report
「Compensation for directors excluding outside directors and Audit Committee members, and for executive officers excluding those responsible for internal audits, consists of (1) fixed compensation, (2) performance-linked bonuses and (3) restricted stock compensation, generally in a 5:3:2 ratio.」
The Company continues to use a compensation system combining fixed compensation, performance-linked bonuses and restricted stock compensation, linked to performance metrics. - FY2018First statedAnnual report
「Compensation for directors excluding outside directors and Audit Committee members, and for executive officers excluding those responsible for internal audits, consists of (1) fixed compensation, (2) performance-linked bonuses and (3) restricted stock compensation, generally in a 5:3:2 ratio.」
Performance-linked bonuses are linked to net income and ROE, and two-thirds of restricted stock compensation is linked to ROS, EPS and ROE under the medium-term management plan. The restriction period is 10 years or until retirement, and a clawback provision has also been established.