Target management for executive bonuses linked to consolidated ordinary profit
First written in FY2019. 1 of 4 entries say "Softened", first in FY2020. Latest entry: FY2022.
Sankyo Frontier moved to the "Worse" side of this theme in 2020, 4 years before the typical company in this theme (2024).
The whole theme swung hardest in 2017: 2 of 15 companies on the "Worse" side.
22 other companies' latest entry also says "Restated".
- FY2022RestatedAnnual report
「Performance-linked compensation is evaluated based on the degree of achievement for metrics including net sales, operating profit, ordinary profit and net income, and is determined after comprehensively considering the budget-to-actual performance and other factors. The amount calculated on this basis is paid at a specified time each year.」
The company reconfirms its policy of determining performance-linked compensation based on the degree of achievement for net sales, operating profit, ordinary profit, net income and other metrics, as well as budget-to-actual performance. - FY2021ReframedAnnual report
「Performance-linked compensation is evaluated based on the degree of achievement for metrics including net sales, operating profit, ordinary profit and net income, and is determined after comprehensively considering the budget-to-actual performance and other factors. The amount calculated on this basis is paid at a specified time each year.」
The explanation of the metrics for performance-linked compensation expanded from a focus on consolidated ordinary profit to the degree of achievement for net sales, operating profit, ordinary profit, net income and other performance measures. The specific target and actual amounts for the previous fiscal year are not provided. - FY2020SoftenedAnnual report
「The metric for directors’ bonuses, which constitute performance-linked compensation, is consolidated ordinary profit because it is a financial measure indicating the company’s recurring profitability.」
The company maintains its policy of using consolidated ordinary profit as the metric for performance-linked compensation, but the specific target and actual amounts reported in the previous fiscal year are not provided for the current fiscal year. - FY2019First statedAnnual report
「The performance-linked compensation metric for directors’ bonuses is consolidated ordinary profit, which is a financial measure indicating the company’s recurring profitability, and the company has therefore selected this metric. The amount of performance-linked compensation is determined after comprehensively considering the budget-to-actual performance for this metric and other factors. The target for the metric related to performance-linked compensation for the current consolidated fiscal year was ¥5,700 million, while actual results were ¥6,090 million.」
The company states that consolidated ordinary profit is used as the metric for directors’ bonuses, with actual results of ¥6,090 million against the current-year target of ¥5,700 million.