Executive Compensation Program Linked to Performance and Shareholder Value
First written in FY2016. 17 of 26 entries say "Advanced", first in FY2018. Latest entry: 2026-07-30.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「Results for the fiscal year ending March 2026 will be calculated based on achievement rates for financial performance, primarily consolidated operating margin of 25.6%, and non-financial performance. The average expected payout rate for inside directors is 64%.」
The Company disclosed an expected average payout rate of 64% for inside directors under the new short-term performance-linked compensation plan, based on consolidated operating margin of 25.6% and other metrics. The medium-term incentive uses consolidated operating margin of 25.6% and ROE of 29.6% as performance metrics. - FY2026-H1AdvancedAnnual report
「For the 21st series of stock acquisition rights, the maximum number of rights is stated. Following the end of the three-year performance evaluation period, a proportion determined according to performance evaluation will become exercisable.」
The Company granted the 21st through 24th series of stock acquisition rights, resolved on 17 June 2025, to directors and corporate officers, executive officers, senior employees and others at domestic and overseas subsidiaries. For the 21st and 23rd series, the proportion of rights that may be exercised is determined based on performance over a three-year evaluation period. - FY2025ReframedAnnual report
「To further strengthen the link between inside director compensation and medium- to long-term corporate value and performance, from the fiscal year ending March 2025 the Company replaced its previous annual performance-linked compensation with short-term performance-linked compensation in cash and medium- to long-term performance-linked compensation in shares. Compensation consists of fixed basic compensation, short-term performance-linked compensation, medium- to long-term performance-linked compensation, medium-term performance-linked compensation (medium-term incentives) and non-performance-linked compensation.」
The previous annual performance-linked compensation was reorganized into a multilayered compensation structure comprising short-term cash compensation, medium- to long-term equity compensation, medium-term incentives and other components. - FY2025-H1AdvancedAnnual report
「Resolution date 18 June 2024 Categories and numbers of eligible persons ① Directors of the Company as of 31 March 2024 (the end of the Company's 61st fiscal year) (3) ② Corporate officers, executive officers and senior employees of the Company as of 31 March 2024 (the end of the Company's 61st fiscal year), and such directors, executive officers and senior employees of the Company's subsidiaries as deemed necessary (107) Number of stock acquisition rights (units) ※ 1,608 Class, content and number of shares underlying the stock acquisition rights (shares) ※ Common shares as described under "(1) Total number of shares, etc. ② Issued shares" 160,800 Exercise period for stock acquisition rights ※ From 1 July 2027 to 31 May 2044」
For the 20th series of stock acquisition rights, the Company is proceeding with a plan to grant 1,608 rights representing 160,800 underlying shares to 3 directors and 107 corporate officers, executive officers, senior employees and others at domestic and overseas subsidiaries. - FY2024RaisedAnnual report
「The share ownership guideline (effective 1 July 2021) was revised on 30 April 2024, in light of the increased proportion of equity compensation following a review of the compensation structure. The target holding was changed from 3 times to 6 times annual fixed basic compensation for the CEO, and from 2 times to 3 times for inside directors and corporate officers.」
The share ownership guideline was revised, increasing the target holding from 3 times to 6 times fixed basic compensation for the CEO and from 2 times to 3 times for inside directors and corporate officers. - FY2024-Q1AdvancedAnnual report
「Resolution date 20 June 2023 Categories and numbers of eligible persons ① Directors of the Company (3) ② Corporate officers, executive officers and senior employees of the Company as of 31 March 2023 (the end of the Company's 60th fiscal year), directors, executive officers and senior employees of the Company's domestic subsidiaries, and such directors, executive officers and senior employees of the Company's overseas subsidiaries as deemed necessary (101) Number of stock acquisition rights (units) ※ 2,060 Class, content and number of shares underlying the stock acquisition rights (shares) ※ Common shares as described under "(1) Total number of shares, etc. ② Issued shares" 206,000 Exercise period for stock acquisition rights ※ From 1 July 2026 to 29 May 2043」
The Company resolved to grant the 19th series of stock acquisition rights to 3 directors and 101 corporate officers, executive officers, senior employees and others at domestic and overseas subsidiaries. The grant comprises 2,060 stock acquisition rights representing 206,000 underlying shares, exercisable from 1 July 2026 to 29 May 2043. - FY2023AdvancedAnnual report
「Actual results for the fiscal year ended March 2023, the metric used to evaluate achievement of targets under the 2020 plan, were a consolidated operating margin of 28.0% and consolidated ROE of 32.3%. Payment will be made in accordance with the calculation formula for medium-term performance-linked compensation.」
The evaluation year for the medium-term performance-linked compensation plan established in 2020 has arrived, and the Company has moved to the payment stage based on actual results of a 28.0% operating margin and 32.3% ROE. - FY2023-Q1AdvancedAnnual report
「① Directors of the Company (3) ② Executive officers and senior employees of the Company as of 31 March 2022 (the end of the Company's 59th fiscal year), directors, executive officers and senior employees of the Company's domestic subsidiaries, and such directors, executive officers and senior employees of the Company's overseas subsidiaries as deemed necessary (98)」
For the 18th series of stock acquisition rights resolved on 21 June 2022, the eligible participants were 3 directors of the Company and 98 executive officers, senior employees and others at domestic and overseas subsidiaries. The grant comprised 770 stock acquisition rights representing 77,000 underlying shares, exercisable from 1 July 2025 to 30 May 2042. - FY2022AdvancedAnnual report
「Actual results for the fiscal year ended March 2022, the metric used to evaluate achievement of targets under the 2019 plan, were a consolidated operating margin of 29.9% and consolidated ROE of 37.2%. Payment will be made in accordance with the calculation formula for medium-term performance-linked compensation.」
The evaluation year for the 2019 plan using operating margin and ROE has arrived, and the Company has moved to the payment stage based on actual performance. - FY2022-Q1AdvancedAnnual report
「① Directors of the Company (8) ② Executive officers and senior employees of the Company as of 31 March 2021 (the end of the Company's 58th fiscal year), directors, executive officers and senior employees of the Company's domestic subsidiaries, and such directors, executive officers and senior employees of the Company's overseas subsidiaries as deemed necessary (90)」
For the 17th series of stock acquisition rights resolved on 17 June 2021, the eligible participants were 8 directors of the Company and 90 executive officers, senior employees and others at domestic and overseas subsidiaries. The grant comprised 700 stock acquisition rights representing 70,000 underlying shares, exercisable from 1 July 2024 to 31 May 2041. - FY2021AdvancedAnnual report
「To further ensure that management sustainably enhances corporate value and shares the benefits with stakeholders, the Company introduced a share ownership guideline. The guideline took effect on 1 July 2021 and sets a target for holding Company shares equivalent to the following amounts within 5 years after the guideline takes effect or after appointment.」
The Company introduced a guideline targeting share ownership equivalent to 1 to 3 times fixed basic compensation within 5 years for the CEO, inside directors, outside directors and executive officers. It also introduced a clawback policy, effective 1 July 2021, allowing performance-linked compensation to be reclaimed. - FY2021-Q1AdvancedAnnual report
「① Directors of the Company (8) ② Executive officers and senior employees of the Company as of 31 March 2020 (the end of the Company's 57th fiscal year), directors, executive officers and senior employees of the Company's domestic subsidiaries as of 31 March 2020, and such directors, executive officers and senior employees of the Company's overseas subsidiaries as deemed necessary (91)」
For the 16th series of stock acquisition rights, the Company designated 8 directors and 91 executive officers, senior employees and others at domestic and overseas subsidiaries as eligible participants and resolved the grant on 23 June 2020. The exercise period is from 3 July 2023 to 31 May 2040. - FY2020AdvancedAnnual report
「Outside directors are responsible not only for supervising management but also for advising management from the perspective of enhancing corporate value over the medium to long term. To establish a compensation structure more consistent with these expected responsibilities, the Company introduced a non-performance-linked equity compensation plan from the current fiscal year and abolished annual performance-linked compensation (cash bonuses).」
For outside directors, the Company introduced a non-performance-linked equity compensation plan and abolished annual cash bonuses from the current fiscal year. It also changed the performance weighting under the 2019 plan for medium-term performance-linked compensation. - FY2020-Q1AdvancedAnnual report
「① Directors of the Company (7) ② Executive officers and senior employees of the Company as of 31 March 2019 (the end of the Company's 56th fiscal year), directors, executive officers and senior employees of the Company's domestic subsidiaries as of 31 March 2019, directors, executive officers and senior employees of the Company's overseas subsidiaries, and such directors of the Company retiring upon the conclusion of the Company's 56th Annual General Meeting of Shareholders held on 18 June 2019, as deemed necessary (95)」
For the 15th series of stock acquisition rights resolved on 18 June 2019, the eligible participants were 7 directors of the Company and 95 executive officers, senior employees and others at domestic and overseas subsidiaries. The grant comprised 3,604 stock acquisition rights representing 360,400 underlying shares, exercisable from 1 July 2022 to 31 May 2039. - FY2019RestatedAnnual report
「The metrics used to evaluate achievement of performance targets over the three-year performance period are the three-year averages of consolidated operating margin and consolidated ROE. The performance-linked coefficient varies between a payout rate of 0% and 150% depending on the degree to which performance targets are achieved over the three-year performance period.」
The Company has reconfirmed that medium-term performance-linked compensation is designed to use the three-year averages of operating margin and ROE, with the payout rate varying from 0% to 150%. - FY2019-Q3RestatedAnnual report
「From the second quarter of the current fiscal year, the Company introduced a stock grant system (the "System") as a globally common incentive plan linked to medium-term performance. The System is intended to raise eligible participants' awareness of their contribution to improving the Group's medium-term performance and increasing corporate value.」
The Company has reconfirmed the content carried over from the previous quarter regarding the introduction of a globally common stock grant system linked to medium-term performance and corporate value. - FY2019-Q2AdvancedAnnual report
「From the second quarter of the current fiscal year, the Company introduced a stock grant system (the "System") as a globally common incentive plan linked to medium-term performance. The System is intended to raise eligible participants' awareness of their contribution to improving the Group's medium-term performance and increasing corporate value.」
The Company introduced a globally common stock grant system linked to medium-term performance and corporate value from the second quarter of the current fiscal year. Eligible participants include directors of domestic and overseas Group companies, excluding outside directors, as well as employees such as executive officers. - FY2019-Q1AdvancedAnnual report
「19 June 2018 Categories and numbers of eligible persons: ① Directors of the Company (9) ② Executive officers and senior employees of the Company as of 31 March 2018 (the end of the Company's 55th fiscal year), directors, executive officers and senior employees of the Company's domestic subsidiaries as of 31 March 2018, and such directors, executive officers and senior employees of the Company's overseas subsidiaries as deemed necessary (86)」
Equity compensation consisting of 2,199 stock acquisition rights representing 219,900 underlying shares was granted to 9 directors and 86 executive officers, senior employees and others at domestic and overseas subsidiaries. - FY2018AdvancedAnnual report
「To achieve further growth by strengthening the link between director compensation and medium-term performance, the Company resolved at the 55th Annual General Meeting of Shareholders to introduce a new medium-term performance-linked compensation plan. Payments under the plan vary between 0% and 150% of the base amount calculated according to each director's position and responsibilities, depending on the degree to which performance targets are achieved over the three-year performance period.」
In addition to the existing fixed basic compensation and annual performance-linked compensation, the Company introduced medium-term performance-linked compensation that varies from 0% to 150% depending on the degree to which performance targets are achieved over three years. - FY2017RestatedAnnual report
「With the aim of strengthening its global competitiveness and enhancing management transparency, the Company will adopt an executive compensation system that is closely linked to business performance and shareholder value.」
The Company has reiterated its performance- and shareholder-value-linked executive compensation system and its policy of ensuring transparency and fairness through the compensation committee. - FY2016First statedAnnual report
「With the aim of strengthening its global competitiveness and enhancing management transparency, the Company will adopt an executive compensation system that is closely linked to business performance and shareholder value.」
The principal performance metrics are net income attributable to owners of the parent and consolidated ROE, with cash bonuses and equity compensation generally comprising an approximately 1:1 mix.