Incentive Design Through Profit-Linked Executive Bonuses and Stock-Based Compensation
First written in FY2019. 1 of 4 entries say "Advanced", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
45 other companies' latest entry also says "Other".
- FY2026Resumption of performance-linked compensation paymentsAnnual report
「Directors (excluding Audit & Supervisory Committee members and outside directors) 179 141 27 11 6」
After performance-linked compensation was not paid to any executive director in the previous fiscal year, the Company recognized ¥27 million in bonuses and ¥11 million in share-based compensation as performance-linked compensation in the current fiscal year. - FY2025No performance-linked compensation paidAnnual report
「However, at a meeting of the Board of Directors held on 14 April 2025, the Company resolved to revise its full-year consolidated earnings forecast downward and, to clarify management responsibility, decided not to pay performance-linked compensation to any Executive Director.」
The Company states that, while maintaining the calculation framework for performance-linked executive bonuses and stock-based compensation, it will not pay performance-linked compensation to any Executive Director for the current fiscal year following the downward revision to its full-year earnings forecast. - FY2020AdvancedAnnual report
「The target metric for performance-linked compensation for the current fiscal year was consolidated net income of ¥1,000 million, based on the earnings forecast disclosed to the Tokyo Stock Exchange. Actual consolidated net income attributable to owners of the parent, as reported in the consolidated statement of income, was ¥1,236 million, and adding executive bonuses of ¥27 million and director stock-based compensation of ¥20 million resulted in ¥1,284 million.」
For performance-linked compensation, the Company disclosed actual results of ¥1,284 million before executive bonuses and stock-based compensation, against a target of ¥1,000 million in consolidated net income, and calculated compensation accordingly. - FY2019First statedAnnual report
「The specific structure of executive compensation consists of fixed compensation (monthly executive compensation) and variable compensation (performance-linked compensation). Variable compensation is divided into executive bonuses and director stock-based compensation (BBT).」
The Company has expanded its disclosure of the existing BBT scheme, specifying the composition of fixed and performance-linked compensation, the calculation of bonuses and stock-based compensation based on consolidated net income, and annual limits of 75,000 points for directors and 5,000 points for Audit & Supervisory Board members.