Executive Compensation System Focused on Enhancing Corporate Value and Linking Pay to Performance
First written in FY2017. 3 of 8 entries say "Advanced", first in FY2024. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「Performance-linked compensation for the Company's directors, excluding directors who are Audit and Supervisory Committee members and outside directors, and others is intended to clarify the relationship between management responsibility for annual performance and compensation, further improve performance, share interests with shareholders toward sustainable medium- to long-term growth, and work to enhance corporate value.」
Specified performance-linked compensation by dividing it into short-term cash compensation and medium- to long-term stock compensation, with consolidated gross profit, consolidated ordinary profit, ID customer sales, TSR and the rate of improvement in employee engagement as evaluation indicators. - FY2025AdvancedAnnual report
「Separately, at the 156th Annual General Meeting of Shareholders held on 29 May 2025, it was resolved to introduce a performance-linked restricted stock compensation plan for the Company's directors, excluding directors who are Audit and Supervisory Committee members and outside directors (the “Eligible Directors”), and to limit the total number of shares granted to Eligible Directors to 216,000 shares per year and the total amount of compensation to ¥180 million per year.」
The Company moved beyond the previous cash-based performance-linked compensation and introduced a performance-linked restricted stock compensation plan. The composition of fixed compensation at 75%, short-term variable compensation at 15% and medium- to long-term variable compensation at 10% was also presented. - FY2024Performance-Based Compensation PaidAnnual report
「The Nomination and Compensation Committee discussed and deliberated on the appointment and dismissal of candidates for directors and executive officers, as well as the review of the compensation system for directors and executive officers and the payment of performance-linked compensation.」
The Nomination and Compensation Committee discussed the payment of performance-linked compensation and other matters, and ¥26 million in performance-linked compensation for inside directors was recorded for the current fiscal year. - FY2023Greater detail on performance-linked compensation conditionsAnnual report
「Performance-linked compensation for the Company's directors, excluding directors who are Audit and Supervisory Committee members, is intended to clarify the relationship between management responsibility for annual performance and compensation, and to further improve performance. Using non-consolidated ordinary profit, which represents profit from ordinary management activities as a whole, as a quantitative indicator, performance-linked compensation is paid from the amount by which the plan is exceeded when all of the conditions below are met. In principle, 30% of the payment is designated as compensation for the purchase of the Company's shares, through contributions to the executive shareholding association.」
Specified a design under which exceeding the plan for non-consolidated ordinary profit serves as the performance-linked compensation indicator, with 30% in principle of the payment designated as compensation for the purchase of the Company's shares. - FY2022Greater detail on compensation designAnnual report
「As a guideline, monthly fixed compensation accounts for approximately 85–90% and performance-linked compensation for approximately 10–15% of total compensation.」
In addition to the existing basic policy of enhancing corporate value, linking compensation to performance, and aligning it with roles and responsibilities, specified the composition of fixed and performance-linked compensation. - FY2020RestatedAnnual report
「The basic policy for the executive compensation system is summarized below. ・A system that contributes to enhancing corporate value ・A compensation system linked to performance ・A compensation system commensurate with roles and responsibilities」
The policy of aligning executive compensation with corporate value enhancement, performance, roles and responsibilities was reiterated. - FY2018RestatedAnnual report
「The basic policy for the executive compensation system is summarized below. ・A system that contributes to enhancing corporate value ・A compensation system linked to performance ・A compensation system commensurate with roles and responsibilities」
Reiterated the executive compensation policy based on corporate value enhancement, performance and alignment with roles and responsibilities. - FY2017First statedAnnual report
「The basic policy for the executive compensation system is summarized below. ・A system that contributes to enhancing corporate value ・A compensation system linked to performance ・A compensation system commensurate with roles and responsibilities」
Disclosed the alignment of the basic executive compensation policy with corporate value enhancement, performance, roles and responsibilities.