Introduction of Performance-Linked Compensation
First written in FY2021. 5 of 8 entries say "Advanced", first in FY2024. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「In addition, medium- to long-term performance-linked compensation was introduced for compensation from 2026 onward.」
In addition to short-term performance-linked compensation, medium- to long-term performance-linked compensation was introduced. The company established a program with the first evaluation period running from April 2026 through March 2029 and targets of consolidated operating profit of ¥15 billion and consolidated ROE of 15%. - FY2024Special compensation program addedAnnual report
「At the Board of Directors meeting held on 14 February 2024, the company revised the aforementioned policy concerning decisions on the content of individual compensation and other payments for directors and introduced the program. Special compensation will be paid, in proportion to the degree of contribution, to directors who make substantial contributions to projects that generate a very significant increase in corporate value, such as projects that realize initiatives expected to make a consistently large contribution to profit over the long term, or that dramatically improve or enhance the management and administration or reputation of the company and its group, even without a direct contribution to profit.」
In addition to existing performance-linked compensation, special compensation for substantial contributions to projects that significantly increase corporate value was introduced in February 2024. - FY2023RestatedAnnual report
「The amount of performance-linked compensation is determined based on 3 criteria: ① evaluation of company-wide performance, meaning the consolidated performance of the company and its group; ② evaluation of the performance of the director's area of responsibility; and ③ evaluation of activities, including medium- to long-term growth and contributions to the company and its group.」
The company continues to evaluate performance-linked compensation based on 3 criteria: company-wide performance, the performance of the area of responsibility, and medium- to long-term growth and contribution. - FY2022AchievedAnnual report
「For compensation and other payments to directors other than directors serving as Audit and Supervisory Committee members from July 2021 onward, the company decided to introduce performance-linked compensation in addition to the existing fixed compensation.」
From July 2021 onward, performance-linked compensation was introduced in addition to fixed compensation. Directors are evaluated on 3 criteria: company-wide performance, the performance of their areas of responsibility, and medium- to long-term growth and contribution. Based on standard amounts, performance-linked compensation was set at approximately 30% on average of total directors' compensation. - FY2021First statedAnnual report
「To ensure that executive compensation functions as a sound incentive for the company's sustainable growth, we decided to introduce performance-linked compensation, in addition to the existing fixed compensation, for compensation payable from the next fiscal year onward to directors other than directors serving as Audit and Supervisory Committee members.」
At the Board of Directors meeting held on 15 February 2021, the company decided to introduce performance-linked compensation from the next fiscal year onward. Directors will be evaluated on 3 criteria: company-wide performance, the performance of their areas of responsibility, and medium- to long-term growth. Performance-linked compensation will account for approximately 30% on average of total directors' compensation, based on standard amounts.