Performance-Based Executive Officer Compensation (Consolidated Net Income Growth Rate and Division Performance)
First written in FY2019. 6 of 7 entries say "Advanced", first in FY2020. Latest entry: FY2025.
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
57 other companies' latest entry also says "Advanced".
- FY2025AdvancedAnnual report
「The company-wide performance metric is the achievement rate for the target milestone for annual growth in consolidated net income set by the Compensation Committee to achieve the company's medium-term management objectives, and the achievement rate was 90%. For the divisional performance metric, performance targets are set for each division based on the company-wide performance target. The achievement rate for the performance targets of the divisions in charge of 27 executive officers, based on a comprehensive assessment that also considers qualitative factors, ranged from 0% to 200%, with a median of 100%.」
The company disclosed current-period results for performance-linked compensation showing a 90% achievement rate for the company-wide performance metric and a 0% to 200% achievement rate for the divisional performance metric, with a median of 100%. - FY2024AdvancedAnnual report
「The company-wide performance metric is the achievement rate for the target milestone for annual growth in consolidated net income set by the Compensation Committee to achieve the company's medium-term management objectives, and the achievement rate was 105%. For the divisional performance metric, performance targets are set for each division based on the company-wide performance target. The achievement rate for the performance targets of the divisions in charge of 26 executive officers, based on a comprehensive assessment that also considers qualitative factors, ranged from 0% to 150%, with a median of 100%.」
The company disclosed an achievement rate of 105% for the company-wide performance metric and a 0% to 150% achievement rate for the divisional performance metric, with a median of 100%. It also set the compensation mix at 1:1:1 for fixed compensation, annual bonuses and share-based compensation, and established a clawback policy. - FY2023AdvancedAnnual report
「In addition, for the president, senior executive officers and managing executive officers, progress toward the ORIX Group's material ESG targets is used as a metric, and an amount ranging from 0% to 30% of the position-based standard amount is added or deducted. If progress is in line with plan, the payout rate is 0%.」
For executive compensation, the company introduced a system that, in addition to the existing company-wide profit growth rate and divisional performance metrics, reflects progress toward material ESG targets in the compensation of the president, senior executive officers and managing executive officers within a range of 0% to 30%. The achievement rate for the company-wide performance metric was 87%, while divisional performance ranged from 0% to 150%, with a median of 100%. - FY2022AdvancedAnnual report
「The company-wide performance metric is the achievement rate for the target milestone for annual growth in consolidated net income set by the Compensation Committee to achieve the company's medium-term management objectives, and the achievement rate was 103%. For the divisional performance metric, performance targets are set for each division based on the company-wide performance target. The achievement rate for the performance targets of the divisions in charge of 20 executive officers, based on a comprehensive assessment that also considers qualitative factors, ranged from 0% to 300%, with a median of 100%.」
The company disclosed current-period results for performance-linked compensation showing a 103% achievement rate for the company-wide performance metric and a 0% to 300% achievement rate for the divisional performance metric, with a median of 100%. - FY2021AdvancedAnnual report
「The company-wide performance metric is the achievement rate for the target milestone for annual growth in consolidated net income set by the Compensation Committee to achieve the company's medium-term management objectives, and the achievement rate was 64%. For the divisional performance metric, performance targets are set for each division based on the company-wide performance target. The achievement rate for the performance targets of the divisions in charge of 18 executive officers, based on a comprehensive assessment that also considers qualitative factors, ranged from 50% to 150%, with a median of 95%.」
The company disclosed full-year results for performance-linked compensation showing a 64% achievement rate for the company-wide performance metric and a 50% to 150% achievement rate for the divisional performance metric, with a median of 95%. - FY2020AdvancedAnnual report
「The company-wide performance metric is the achievement rate for the target milestone for annual growth in consolidated net income set by the Compensation Committee to achieve the company's medium-term management objectives, and the achievement rate was 90%. For the divisional performance metric, the achievement rate for the performance targets of the divisions in charge of 25 executive officers, based on a comprehensive assessment that also considers qualitative factors, ranged from 0% to 135%, with a median of 90%.」
The company disclosed for the first time actual results showing a 90% achievement rate for the company-wide performance metric and a 0% to 135% achievement rate for the divisional performance metric in its performance-linked executive compensation. - FY2019First statedAnnual report
「Performance-linked compensation for the current fiscal year, consisting of an annual bonus, varies from 0% to 200% against 50% of the position-based standard amount, using the achievement rate for the annual growth target for consolidated net income as the company-wide performance metric. At the same time, for each executive officer, the achievement rate for the performance target of the division in charge is used as the divisional performance metric, varying from 0% to 300% against 50% of the position-based standard amount.」
The company newly disclosed a compensation scheme for executive officers' annual bonuses that uses the annual growth rate of consolidated net income and the performance of the divisions in their charge as metrics, with specific ranges of variation against the standard amount.