Executive Compensation Design through the Compensation Advisory Committee and Performance-Linked Compensation
First written in FY2021. 1 of 6 entries say "Advanced", first in FY2022. Latest entry: FY2026.
The whole theme swung hardest in 2020: 5 of 26 companies on the "Worse" side.
15 other companies' latest entry also says "Other".
- FY2026Sales target achieved, operating profit target missedAnnual report
「The benchmark performance indicators for performance-linked compensation for the current business year were net sales of ¥16,237 million in the consolidated income statement, compared with actual net sales of ¥17,306 million, and operating profit of ¥2,637 million, compared with actual operating profit of ¥2,463 million.」
For the performance-linked compensation indicators, net sales exceeded the benchmark, while operating profit fell below it. The results diverged by indicator, compared with both indicators being achieved through the previous year. - FY2025Actual performance exceeded the performance-linked indicatorsAnnual report
「The benchmark performance indicators for performance-linked compensation for the current business year were net sales of ¥15,018 million in the consolidated income statement, compared with actual net sales of ¥16,237 million, and operating profit of ¥2,309 million, compared with actual operating profit of ¥2,637 million.」
Current-year net sales and operating profit both exceeded the benchmarks for performance-linked compensation. Actual performance changed from falling below the benchmarks in the previous year to exceeding them in the current year. - FY2024Actual performance exceeded the performance-linked indicatorsAnnual report
「The benchmark performance indicators for performance-linked compensation for the current business year were operating profit of ¥1,288,770 thousand in the consolidated income statement, compared with actual operating profit of ¥2,309,402 thousand. The net sales benchmark was ¥12,981,027 thousand, compared with actual net sales of ¥15,018,561 thousand.」
For the performance-linked compensation indicators based on the previous year's actual results as benchmarks, current-year operating profit and net sales both exceeded their benchmarks. Actual performance changed from falling below the benchmarks in the previous year to exceeding them. - FY2023Actual performance below the performance-linked indicatorsAnnual report
「The benchmark performance indicators for performance-linked compensation for the current business year were operating profit of ¥2,655,351 thousand in the consolidated income statement, compared with actual operating profit of ¥1,288,770 thousand. The net sales benchmark was ¥13,382,214 thousand, compared with actual net sales of ¥12,981,027 thousand.」
The company disclosed operating profit and net sales as the benchmarks for performance-linked compensation, and actual results for the current period were below both benchmarks. - FY2022AdvancedAnnual report
「The target performance indicator for performance-linked compensation for the current business year was operating profit of ¥1,866,222 thousand in the consolidated income statement, compared with actual operating profit of ¥2,665,351 thousand. The net sales target was ¥12,447,693 thousand, compared with actual net sales of ¥13,382,214 thousand.」
For the performance-linked compensation system, the company disclosed for the first time the targets and actual results for operating profit and net sales for the current year. Both operating profit and net sales exceeded their targets. - FY2021First statedAnnual report
「Performance-linked compensation and other compensation will be paid in cash reflecting performance indicators (KPIs) to raise awareness of improving performance in each business year. Bonuses will be paid annually at a specified time in amounts calculated according to the degree of achievement against targets such as consolidated operating profit for each business year.」
Based on recommendations from the Compensation Advisory Committee, composed of outside directors, the company disclosed for the first time specific bonus policies linked to achievement of KPIs such as consolidated operating profit and net sales.