Executive Compensation Design Based on Profit-Linked Pay
First written in FY2017. 1 of 5 entries say "Advanced", first in FY2019. Latest entry: FY2026.
The whole theme swung hardest in 2017: 2 of 16 companies on the "Worse" side.
16 other companies' latest entry also says "Raised".
- FY2026RaisedAnnual report
「(i) Performance-linked compensation shall be calculated by multiplying individual net income for the fiscal year, rounded down to the nearest ¥10 million, by an index corresponding to the recipient's position, and the aggregate amount shall not exceed ¥65 million.」
The company raised the aggregate cap on performance-linked compensation from ¥53 million to ¥65 million and specified the indices by position. This was presented as the calculation method applicable from the 144th fiscal year, ending March 2027. - FY2023ReframedAnnual report
「Performance-linked compensation shall be calculated by multiplying individual net income for the fiscal year, rounded down to the nearest ¥10 million, by an index corresponding to the recipient's position, and the aggregate amount shall not exceed ¥53 million. Notwithstanding the above, no performance-linked compensation shall be paid if individual net income is less than ¥300 million. If individual net income exceeds ¥1,500 million, it shall be treated as ¥1,500 million for purposes of the above calculation.」
From the fiscal year ending March 2024, the company changed the performance-linked compensation formula, setting the aggregate cap at ¥53 million, the minimum individual net income for payment at ¥300 million and the amount used in the calculation at a maximum of ¥1,500 million. - FY2020Individual net income below targetAnnual report
「Individual net income for the fiscal year was ¥867 million, compared with the target of ¥1,183 million.」
Individual net income for the fiscal year, the metric used to calculate profit-linked compensation, was ¥867 million versus the target of ¥1,183 million, falling short of the target. - FY2019AdvancedAnnual report
「Individual net income for the fiscal year was ¥1,338 million, compared with the target of ¥1,084 million.」
For individual net income for the fiscal year, the metric used to calculate profit-linked compensation, the company reported actual income of ¥1,338 million in fiscal 2018 against a target of ¥1,084 million. - FY2017First statedAnnual report
「The total amount of profit-linked compensation paid to full-time directors shall be the amount obtained by multiplying the individual net income for the fiscal year by 3.5%, rounded down to the nearest ¥1 million, and shall not exceed ¥40 million. ② No profit-linked compensation shall be paid if net income for the fiscal year is less than ¥300 million.」
The company disclosed a performance-linked compensation formula based on 3.5% of individual net income for the fiscal year, subject to an aggregate cap of ¥40 million, with no payment if net income for the fiscal year is less than ¥300 million.