Introduction of EPS- and Share Price-Linked Bonuses
First written in FY2020. 3 of 6 entries say "Advanced", first in FY2021. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026ReframedAnnual report
「Specifically, it consists of three types: (1) base compensation, (2) performance-linked bonuses, and (3) performance-linked stock compensation.」
From fiscal 2026 onward, executive compensation was reorganized from four types, including the previous share-price-linked bonuses, into three types, and the performance-linked component was expanded to 45%–80%. ROE was incorporated into performance-linked bonuses, while TSR and the ROIC spread were incorporated into stock compensation. - 2026-05-12AdvancedEarnings presentation
「Added capital efficiency (ROE and ROIC spread) to the performance measures for executive compensation」
ROE and ROIC spread were added to the performance measures for executive compensation, strengthening the link with capital-efficiency management. - FY2025AdvancedAnnual report
「• EPS growth rate Reason for selection: This is an indicator set as a target in the medium-term management strategy, and is intended to strongly motivate the achievement of the strategy's targets Actual result: 1.12 • Share-price change rate Reason for selection: This is an indicator directly linked to changes in shareholder value, and is intended to increase the linkage between executive compensation and shareholder value Actual result: 1.10」
For the evaluation indicators for share-price-linked bonuses, the EPS growth rate was 1.12 and the share-price change rate relative to TOPIX was 1.10. Both improved from the previous year's EPS growth rate of 0.97 and share-price change rate of 0.79. - FY2024Decline in the EPS growth rate and share-price change rateAnnual report
「• EPS growth rate = EPS at the end of the current fiscal year / EPS at the end of the previous fiscal year Actual result: 0.97 • Share-price change rate = (share price at the end of the current fiscal year / share price at the end of the previous fiscal year) / (TOPIX at the end of the current fiscal year / TOPIX at the end of the previous fiscal year) Actual result: 0.79」
For the evaluation indicators for share-price-linked bonuses, the EPS growth rate for the fiscal year ended March 2024 was 0.97, and the share-price change rate relative to TOPIX was 0.79. - FY2021AdvancedAnnual report
「Compensation for directors engaged in business execution is structured to be linked to the performance of the KDDI Group in each fiscal year, progress toward the targets in the medium-term management plan, and shareholder value, in order to enhance their motivation to contribute to the improvement of corporate value over the medium to long term. Specifically, it consists of four types: (1) base compensation, (2) performance-linked bonuses, (3) performance-linked stock compensation, and (4) share-price-linked bonuses.」
Following the introduction of share-price-linked bonuses, we adopted a resolution in January 2021 on the policy for determining director compensation, systematizing the linkage between the four types of compensation and performance, the medium-term plan, and shareholder value. Performance-linked compensation accounts for 45%–65%, and at least 60% for the president. - FY2020First statedAnnual report
「In addition, from fiscal 2019 we introduced share-price-linked bonuses to strongly motivate the achievement of the targets in the medium-term management plan and increase the linkage between executive compensation and shareholder value. Under this system, the evaluation indicators are the EPS growth rate, which is set as a target in the medium-term management plan, and the share-price change rate, which is directly linked to changes in shareholder value.」
In addition to the existing performance-linked stock compensation, we introduced share-price-linked bonuses from fiscal 2019 using the EPS growth rate and share-price change rate as evaluation indicators.