Performance-Linked Executive Compensation Emphasizing Transparency, Fairness and Objectivity
First written in FY2019. 8 of 9 entries say "Advanced", first in FY2021. Latest entry: 2026-08-14.
The whole theme swung hardest in 2022: 13 of 92 companies on the "Worse" side.
65 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The targets and actual results for each performance indicator for the evaluation year, defined as the fiscal year preceding the current fiscal year, were as follows. Item | Target | Actual; Consolidated revenue | 412,000 | 436,112; Consolidated operating profit | 9,400 | 9,046; ROE | 8.0% | 14.6%」
For performance-linked executive compensation, the company disclosed the targets and actual results for revenue, operating profit and ROE. Monthly compensation for the current fiscal year was 1.2 times the base amount. Revenue and ROE exceeded their targets, while operating profit fell short of its target. - FY2025AdvancedAnnual report
「“Stock-based compensation” consists of allocating restricted stock as non-monetary compensation linked to the improvement of corporate value over the medium to long term.」
In addition to performance-linked compensation, the company operated a restricted stock compensation plan and disposed of 39,813 shares during the current fiscal year. Performance-linked compensation was 1.2 times the base amount, and the targets and actual results for revenue, operating profit and ROE were also disclosed. - FY2024AdvancedAnnual report
「The range of adjustment was set at 0.5 to 1.5 times the base amount determined according to the executive’s position, and the result for the current fiscal year was 1.5 times the base amount. The targets and actual results for each performance indicator for the current fiscal year were as follows: consolidated revenue, 430,000 and 410,534; consolidated operating profit, 7,500 and 8,978; ROE, 8% and 10.1%, respectively.」
For performance-linked executive compensation, the result for the current fiscal year was 1.5 times the base amount. Operating profit and ROE exceeded their targets, while revenue fell short of its target. - FY2023AdvancedAnnual report
「The targets and actual results for each performance indicator for the current fiscal year were as follows. (Unit: ¥ million) Item | Target | Actual; Consolidated revenue | 390,000 | 425,173; Consolidated operating profit | 6,800 | 8,162; ROE | 8% | 11.1%」
The company disclosed the targets and actual results for the current fiscal year for performance-linked executive compensation. Actual revenue, operating profit and ROE all exceeded their targets. Performance-linked compensation was 1.3 times the base amount. - FY2022AdvancedAnnual report
「Specifically, consolidated revenue, which measures earnings from the core business, consolidated operating profit and ROE, which is linked to shareholder returns, are used as performance indicators because they enable management’s results and responsibilities to be assessed objectively. The results for the evaluation year, defined as the fiscal year preceding the relevant fiscal year, are indexed based on predetermined rules, and the compensation amount is increased or decreased based on the index. The range of adjustment is 0.5 to 1.5 times the base amount set according to the executive’s position, and the result for the current fiscal year was 1.3 times the base amount.」
The company disclosed the specific calculation method for its performance-linked executive compensation system, which uses revenue, operating profit and ROE as indicators. The payment for the current fiscal year was 1.3 times the base amount. The targets were revenue of ¥360,000 million, operating profit of ¥5,000 million and ROE of 8%; actual results were ¥381,432 million, ¥6,905 million and 9.7%, respectively. - FY2021AdvancedAnnual report
「Specifically, revenue, operating profit and ROE are used as performance indicators. The results for the evaluation year, defined as the fiscal year preceding the relevant fiscal year, are indexed based on predetermined rules, and the compensation amount is increased or decreased based on the index. The range of adjustment is 0.5 to 1.5 times the base amount set according to the executive’s position, and the result for the current fiscal year was 0.6 times the base amount.」
The company disclosed the specific structure and results of its performance-linked compensation and restricted stock compensation, linked to revenue, operating profit and ROE, under its executive compensation policy emphasizing transparency, fairness and objectivity. - FY2019First statedAnnual report
「The company will ensure “transparency,” “fairness” and “objectivity” in compensation. It will strengthen incentives to improve performance by introducing performance-linked compensation.」
The company has stated that its basic policy for executive compensation is to ensure transparency, fairness and objectivity and strengthen incentives through performance-linked compensation. It has also presented a process under which the Nomination and Compensation Committee considers the matters and makes recommendations to the Board of Directors.