Performance-linked executive compensation and involvement of outside directors
First written in FY2021. 1 of 3 entries say "Advanced", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2023: 1 of 9 companies on the "Worse" side.
5 other companies' latest entry also says "Restated".
- FY2026RestatedAnnual report
「The fixed compensation of each director is set at an amount equivalent to 60% of the standard compensation for the relevant position. Each director’s performance-linked compensation is calculated by multiplying an amount equivalent to 40% of the standard compensation for the relevant position by the payment rate determined based on performance evaluations.」
The Company continues its compensation structure of 60% fixed compensation and 40% performance-linked compensation, with 70% quantitative and 30% qualitative evaluation. - FY2025AdvancedAnnual report
「Quantitative evaluation items are “consolidated net sales,” “consolidated ordinary income,” “net income attributable to owners of the parent,” “return on equity (ROE)” and “return on invested capital (ROIC).” ROE and ROIC have been used in performance evaluations since the fiscal year ended March 2025. Qualitative evaluation items include “progress in management strategy and areas of responsibility.”」
The Company added ROE and ROIC to the quantitative evaluation items for performance-linked compensation and began using them in performance evaluations for the fiscal year ended March 2025. - FY2021First statedAnnual report
「The fixed compensation of each director is set at an amount equivalent to 60% of the standard compensation for the relevant position. Each director’s performance-linked compensation is calculated by multiplying an amount equivalent to 40% of the standard compensation for the relevant position by the payment rate determined based on performance evaluations. Performance is evaluated using quantitative evaluation, weighted at 70%, and qualitative evaluation, weighted at 30%.」
The Company identified for the first time, as an independent theme, its policy of determining directors’ compensation using a 60% fixed and 40% performance-linked structure, with quantitative evaluation accounting for 70% and qualitative evaluation for 30%.