Introduction and Operation of a KPI-Linked Executive Compensation System
First written in FY2021. 1 of 4 entries say "Advanced", first in FY2022. Latest entry: FY2025.
Century21 Real Estate Of Japan moved to the "Worse" side of this theme in 2025, 1 year after the typical company in this theme (2024).
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
7 other companies' latest entry also says "Softened".
- FY2025SoftenedAnnual report
「The performance-linked component is paid in cash based on the degree of achievement against performance indicators (KPIs: budget comparison for net income and other measures) to raise awareness of improving performance in each fiscal year. The incentive rate is calculated based on a quantitative evaluation using a predetermined method based on the KPIs, and the result is multiplied by the standard amount.」
The description of the KPIs for performance-linked compensation has been streamlined from the previous “year-on-year and budget comparisons for net income” to “budget comparison and other measures,” and the qualitative evaluation previously described cannot be confirmed in this filing. - FY2023RestatedAnnual report
「The performance-linked component is paid in cash based on the degree of achievement against performance indicators (KPIs: year-on-year and budget comparisons for net income) to raise awareness of improving performance in each fiscal year. The incentive rate is calculated based on quantitative evaluations, using a predetermined method based on the KPIs, and qualitative evaluations covering factors such as industry position and preparations for future growth, and the result is multiplied by the standard amount.」
The company has reconfirmed performance-linked compensation using year-on-year and budget comparisons for net income as KPIs, together with a calculation method based on quantitative and qualitative evaluations. - FY2022AdvancedAnnual report
「The performance-linked component is paid in cash based on the degree of achievement against performance indicators (KPIs: year-on-year and budget comparisons for net income) to raise awareness of improving performance in each fiscal year. The incentive rate is calculated based on quantitative evaluations, using a predetermined method based on the KPIs, and qualitative evaluations covering factors such as industry position and preparations for future growth, and the result is multiplied by the standard amount.」
The company has specified the calculation method for performance-linked compensation using year-on-year and budget comparisons for net income as KPIs, and operates the system based on an indicative fixed compensation-to-performance-linked compensation ratio of 6–7 to 4–3. - FY2021First statedAnnual report
「The performance-linked component is paid in cash based on the degree of achievement against performance indicators (KPIs: year-on-year and budget comparisons for net income) to raise awareness of improving performance in each fiscal year. … The indicative ratio of the different types of directors’ compensation for the fiscal year is fixed compensation: performance-linked compensation = 8:2. For the following fiscal year, the indicative ratio is fixed compensation: performance-linked compensation = (6–7):(4–3).」
Based on a Board of Directors resolution in February 2021, the company disclosed performance-linked compensation using year-on-year and budget comparisons for net income as KPIs, together with its policy on the ratio of fixed to performance-linked compensation.