Executive Compensation Structure Combining Fixed and Performance-Based Compensation
First written in FY2021. 1 of 5 entries say "Advanced", first in FY2022. Latest entry: FY2025.
The whole theme swung hardest in 2024: 2 of 6 companies on the "Worse" side.
2 other companies' latest entry also says "Other".
- FY2025No performance-linked bonuses paid to directorsAnnual report
「No bonuses were paid to directors as performance-linked remuneration or other compensation during the current fiscal year.」
The Company maintains its policy of structuring remuneration as basic remuneration and performance-linked remuneration, while disclosing that no performance-linked bonuses were paid to directors during the current fiscal year. - FY2024SoftenedAnnual report
「With respect to bonuses paid to audit & supervisory board members as performance-linked remuneration and other compensation, the policy through the 115th fiscal period was to pay bonuses calculated at the same rate as the payment rate for directors’ performance-linked remuneration. However, the Audit & Supervisory Board determined that payment was inappropriate because audit & supervisory board members are independent of the execution of business, and decided that from the 116th fiscal period only basic remuneration would be paid.」
While maintaining the structure of fixed remuneration and performance-linked remuneration for directors, the Company changed the policy for audit & supervisory board members from the 116th fiscal period to discontinue performance-linked bonuses and pay only basic remuneration. - FY2023RestatedAnnual report
「The performance indicator selected as the basis for calculating the amount of performance-linked remuneration and other compensation is the Company’s ordinary profit for each fiscal year... Ordinary profit for the current consolidated fiscal year was ¥1,185 million.」
The Company continues its policy of structuring officers’ remuneration as basic remuneration and performance-linked remuneration, using ordinary profit as the performance indicator. - FY2022AdvancedAnnual report
「The performance indicator selected as the basis for calculating the amount of performance-linked remuneration and other compensation is the Company’s ordinary profit for each fiscal year. The reason for selecting this indicator is that ordinary profit, which clearly reflects operating results, is considered one of the most appropriate indicators for heightening management’s awareness of improving performance in each fiscal year. Ordinary profit for the current consolidated fiscal year was ¥1,590 million.」
Under the policy of using ordinary profit as the indicator for performance-linked remuneration, the Company discloses ordinary profit of ¥1,590 million for the current consolidated fiscal year and the bonus amounts paid to directors and outside officers. - FY2021First statedAnnual report
「The basic policy is for individual directors’ remuneration to be set at an appropriate level based on their respective responsibilities. In principle, it consists of fixed basic remuneration and performance-linked remuneration.」
The Company provides, for the first time in a consolidated disclosure, its basic policy of structuring directors’ remuneration as basic remuneration and performance-linked remuneration, as well as the procedure for determining it at a board meeting based on the opinions of outside directors.