Performance-linked executive compensation tied to sales growth and operating margin
First written in FY2020. 1 of 4 entries say "Reframed", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2020: 4 of 31 companies on the "Worse" side.
24 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「The company partially revised the performance indicators for performance-linked compensation from this fiscal year. In addition to operating profit, the previous performance indicator reflecting profit growth, it added the interest-bearing debt-to-EBITDA multiple, reflecting the securing of financial soundness, and ROE, reflecting management that takes the cost of capital into account.」
The company added the interest-bearing debt-to-EBITDA multiple and ROE to the indicators for performance-linked compensation, strengthening alignment with its 2030 management targets. The composition of 80% quantitative and 20% qualitative targets remains unchanged. - FY2023Revised the composition of quantitative and qualitative targets in performance evaluations to 80:20Annual report
「The requirements for determining the performance evaluation underlying the calculation consist of 80% quantitative targets and 20% qualitative targets.」
The company states that performance-linked compensation evaluations consist of 80% quantitative targets and 20% qualitative targets. - FY2022ReframedAnnual report
「Performance-linked compensation is calculated based on a comprehensive consideration of annual consolidated operating profit and other indicators linked to performance for each fiscal year, reflecting the degree of achievement, and is paid together with base compensation.」
The company reorganized its compensation policy from an explanation centered on sales growth and operating margin on sales to one that comprehensively considers annual consolidated operating profit and other indicators. - FY2020First statedAnnual report
「Compensation for directors who also serve as executive officers consists of performance-linked compensation calculated by adding the fixed compensation set for each position as the base amount to an amount obtained by multiplying that base by a performance-linked rate, within a range of plus or minus 10%, calculated under evaluation criteria prescribed in advance by internal rules according to the achievement of single-year performance and medium- to long-term targets based on sales growth and the operating margin on sales. The requirements for determining the performance evaluation underlying the calculation consist of 60% quantitative targets and 40% qualitative targets.」
The company described a compensation system for directors who also serve as executive officers using sales growth, operating margin on sales, single-year and medium- to long-term targets, a performance-linked rate within plus or minus 10%, and an evaluation composition of 60% quantitative and 40% qualitative targets.