Executive Bonuses Linked to Consolidated Operating Profit
First written in FY2017. 2 of 7 entries say "Reframed", first in FY2023. Latest entry: FY2026.
BUSINESS BRAIN SHOWA・OTA INC. moved to the "Worse" side of this theme in 2023, 1 year before the typical company in this theme (2024).
The whole theme swung hardest in 2020: 5 of 25 companies on the "Worse" side.
17 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Per-point amount = ¥8,350 thousand × (40% of consolidated revenue growth rate + 60% of consolidated operating profit achievement rate)」
The company resolved to apply a specific performance-linked formula to the calculation of executive bonuses for the following fiscal year, combining a revenue growth rate weighting of 40% and an operating profit achievement rate weighting of 60%. - FY2025ReframedAnnual report
「In this review, consolidated revenue was added as a performance indicator based on the recognition that scale expansion is also necessary to enhance enterprise value.」
For executive bonuses for the fiscal year ending March 2026, the calculation method was changed from the previous method based on consolidated operating profit and share of profit or loss of investments accounted for using the equity method to a method combining consolidated revenue at 40% and consolidated operating profit at 60%. - FY2023ReframedAnnual report
「Total payout = (consolidated operating profit (IFRS) + share of profit or loss of investments accounted for using the equity method) × 3.5%」
For the fiscal year ending March 2024, the basis for calculating executive bonuses was changed from consolidated operating profit alone to the sum of consolidated operating profit and share of profit or loss of investments accounted for using the equity method, by adding the latter to the calculation. - FY2022RaisedAnnual report
「Total payout = consolidated operating profit (IFRS) × 3.5%. However, no payout will be made if consolidated operating profit is less than ¥1 billion, and the total payout will be capped at ¥120 million.」
For performance-linked bonuses for the fiscal year ending March 2023, the 3.5% rate was maintained and the payout cap was increased from ¥100 million to ¥120 million. The payout threshold is consolidated operating profit of less than ¥1 billion. - FY2019Changes to the payout threshold and cap for the following fiscal yearAnnual report
「Total payout = consolidated operating profit × 3.5%. However, no payout will be made if consolidated operating profit is less than ¥1.4 billion, and the total payout will be capped at ¥70 million.」
For performance-linked bonuses for the fiscal year ending March 2020, the 3.5% rate was maintained, while the operating profit threshold below which no payout is made changed from ¥800 million to ¥1.4 billion, and the cap increased from ¥60 million to ¥70 million. - FY2018SoftenedAnnual report
「Total payout = consolidated operating profit × 3.5%. However, no payout will be made if consolidated operating profit is less than ¥800 million, and the total payout will be capped at ¥60 million.」
The profit-linked compensation rate changed from 4% in the previous year to 3.5%. The no-payout threshold of ¥800 million and the ¥60 million cap remain unchanged. - FY2017First statedAnnual report
「Total payout = consolidated operating profit × 4%. However, no payout will be made if consolidated operating profit is less than ¥800 million, and the total payout will be capped at ¥60 million.」
The company disclosed its calculation policy for profit-linked compensation: no payout if consolidated operating profit is below ¥800 million, with a cap of ¥60 million.