Executive compensation linked to achievement of plans for consolidated net sales and operating profit
First written in FY2019. 4 of 7 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2020: 5 of 26 companies on the "Worse" side.
15 other companies' latest entry also says "Other".
- FY2026Targets for performance indicators not achieved in the final yearAnnual report
「The performance-linked coefficient is set at 1 if net income attributable to owners of the parent for the fiscal year covering the relevant evaluation period achieves the company's target, and at 0 if the target is not achieved. The targets for consolidated net income attributable to owners of the parent under the medium-term management plan commencing in fiscal 2023 are ¥16.0 billion for the fiscal year ending March 2024, the first year; ¥17.0 billion for the fiscal year ending March 2025, the second year; and ¥20.0 billion for the fiscal year ending March 2026, the final year.」
Net income attributable to owners of the parent for the fiscal year ending March 2026 was ¥18.237 billion, below the final-year target of ¥20.0 billion for performance-linked share-based compensation. - FY2024AdvancedAnnual report
「The performance-linked coefficient is set at 1 if net income attributable to owners of the parent for the fiscal year covering the relevant evaluation period achieves the company's target, and at 0 if the target is not achieved. The targets for consolidated net income attributable to owners of the parent under the medium-term management plan commencing in fiscal 2023 are ¥16.0 billion for the fiscal year ending March 2024, the first year; ¥17.0 billion for the fiscal year ending March 2025, the second year; and ¥20.0 billion for the fiscal year ending March 2026, the final year.」
Net income attributable to owners of the parent in the first year of Challenge13 was ¥16.608 billion, exceeding the first-year share-based compensation target of ¥16.0 billion. - FY2023AdvancedAnnual report
「Under the new medium-term management plan beginning in fiscal 2023, the target for consolidated net income attributable to owners of the parent for the first year, the fiscal year ending March 2024, is ¥16.0 billion; the target for the second year, the fiscal year ending March 2025, is ¥17.0 billion; and the target for the final year, the fiscal year ending March 2026, is ¥20.0 billion.」
The company has fleshed out a mechanism for performance-linked share-based compensation tied to net income attributable to owners of the parent, using Challenge13 targets of ¥16.0 billion for the fiscal year ending March 2024, ¥17.0 billion for the fiscal year ending March 2025, and ¥20.0 billion for the fiscal year ending March 2026. - FY2022-Q2AdvancedAnnual report
「At the 80th Annual General Meeting of Shareholders held on 29 June 2021, approval was granted for the introduction of a performance-linked stock compensation plan for directors (the “Plan”). The purpose of introducing the Plan is to increase awareness of contributing to improved medium- to long-term performance and increased corporate value. Specifically, a trust (the “Trust”) will be established using funds contributed by the Company, and the Trust will acquire the Company's shares. In accordance with the Company's share delivery rules, the Company will deliver and grant directors compensation in the form of the Company's shares and cash equivalent to the proceeds from the sale of those shares.」
For the performance-linked stock compensation plan approved for introduction in the previous period, the Company disclosed details of its operation, including the establishment of the trust, acquisition of shares and delivery of shares and other compensation to directors. The shares held by the trust totaled 26,900, with a carrying value of ¥65 million. - FY2021AdvancedAnnual report
「At the 80th Annual General Meeting of Shareholders held on 29 June 2021, the introduction of a stock compensation plan using a stock delivery trust was approved. From 1 July 2021, compensation for the Company's directors consists of fixed compensation, performance-linked compensation in the form of directors' bonuses, and non-monetary compensation in the form of stock compensation.」
In addition to performance-linked compensation based on consolidated net income, the Company approved the introduction of a stock compensation plan using a stock delivery trust and decided to incorporate it into the compensation structure from 1 July 2021. - FY2020ReframedAnnual report
「The indicator for performance-linked compensation is consolidated net income attributable to owners of the Company's shares, an indicator that provides funds for future investment and shareholder returns.」
The performance-linked compensation indicator, which had been the degree of achievement of consolidated revenue and operating profit targets in the previous fiscal year, was changed to consolidated net income. - FY2019First statedAnnual report
「Performance-linked compensation was introduced to increase motivation to improve performance by using performance-related indicators for evaluation. These indicators are the degree of achievement of targets for consolidated revenue and consolidated operating profit, and compensation is determined based on separately established evaluation criteria. The targets for performance-linked compensation for the fiscal year were consolidated revenue of ¥195.0 billion and consolidated operating profit of ¥19.5 billion, while actual results were consolidated revenue of ¥197.6 billion and consolidated operating profit of ¥20.0 billion.」
The Company disclosed a system linking part of executive compensation to the degree of achievement of consolidated revenue and operating profit targets. In the fiscal year, both revenue and operating profit exceeded their targets.