Transparency and Performance-Linked Design of Executive Compensation by the Compensation Committee
First written in FY2021. 3 of 8 entries say "Advanced", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2020: 4 of 31 companies on the "Worse" side.
17 other companies' latest entry also says "Other".
- FY2026No performance-linked compensation paidAnnual report
「No performance-linked compensation or other such compensation was paid for the fiscal year because the targets were not met.」
Against the BBT award condition of consolidated net income of at least ¥500 million, current-year net income was ¥491 million, so no performance-linked compensation was paid. - FY2025AdvancedAnnual report
「The shareholders' equity balance for the current fiscal year was ¥475 million on a non-consolidated basis and ¥652 million on a consolidated basis, while consolidated net income was ¥99 million.」
The Company disclosed the current fiscal year's results for the BBT award conditions, namely dividends, shareholders' equity and consolidated net income. It recognized ¥7 million in expense for the stock benefit trust for directors during the fiscal year. - FY2024AdvancedAnnual report
「Points awarded to directors and other officers = standard points based on position × performance-linked coefficient. The coefficient linked to the performance indicator, consolidated net income, ranges from 0 to 1.5 and is determined based on the following award conditions: dividends must be possible or have been paid as of the fiscal year-end; shareholders' equity must be at least ¥1 billion on a non-consolidated basis and ¥3 billion on a consolidated basis; and consolidated net income must be at least ¥500 million.」
The Company has specified the operating criteria for BBT, including a coefficient of 0 to 1.5 and award conditions based on consolidated net income, shareholders' equity and payment of dividends. - FY2024-Q3RestatedAnnual report
「Based on a resolution of the 128th Annual General Meeting of Shareholders held on 25 May 2023, the Company has introduced the performance-linked stock compensation plan BBT, or Board Benefit Trust, as new medium- to long-term performance-linked compensation for directors, excluding outside directors, and executive officers.」
The Company continues to disclose BBT, the performance-linked stock compensation plan for directors and executive officers. Treasury shares remaining in the trust are valued at ¥32 million and total 88,200 shares. - FY2024-Q2RestatedAnnual report
「Based on a resolution of the 128th Annual General Meeting of Shareholders held on 25 May 2023, the Company has introduced the performance-linked stock compensation plan BBT, or Board Benefit Trust, as new medium- to long-term performance-linked compensation for directors, excluding outside directors, and executive officers.」
The Company continues to disclose BBT, the performance-linked stock compensation plan for directors and executive officers, as a plan based on a resolution of the Annual General Meeting of Shareholders. - FY2023ReframedAnnual report
「Based on a resolution of the 128th Annual General Meeting of Shareholders held on 25 May 2023, the Company has introduced the performance-linked stock compensation plan, the Stock Benefit Trust (BBT), for directors, excluding outside directors, and executive officers, collectively referred to as the directors and other officers. The plan changes the existing performance-linked compensation paid in cash, namely annual bonuses, to stock-based compensation. No awards are granted if consolidated net income is less than ¥500 million.」
The Company changed its conventional cash-based annual-bonus performance-linked compensation to the Stock Benefit Trust (BBT), under which shareholders also share the risk of a decline in the share price. Consolidated net income of ¥500 million is one of the criteria for determining awards. - FY2022AdvancedAnnual report
「The amount and calculation method for performance-linked compensation are determined based on performance indicators reflecting a level of stakeholder understanding and returns to shareholders. Specifically, the Compensation Committee deliberates on the payout ratio, ordinary profit at the end of the fiscal year, shareholders' equity balance and other performance indicators, as well as the payment amount and calculation method, and makes recommendations to the Board of Directors, which makes the final decision.」
The Company has specified the operation of performance-linked compensation designed and recommended by the Compensation Committee, using the payout ratio, ordinary profit and shareholders' equity balance as performance indicators. - FY2021First statedAnnual report
「To ensure transparency and fairness in determining compensation and other benefits for directors and Audit & Supervisory Board members, the Board of Directors consults the Compensation Committee established on 1 March 2021. Based on the committee's recommendations, directors' compensation is determined by resolution of the Board of Directors, while Audit & Supervisory Board members' compensation is determined through discussions among the Audit & Supervisory Board members.」
The Company has disclosed for the first time a framework under which a Compensation Committee reviews and recommends compensation combining base pay and performance-linked compensation, using the payout ratio and ordinary profit at the end of the fiscal year as performance indicators.