Director compensation policy linked to consolidated ordinary profit and shareholder returns
First written in FY2021. 1 of 6 entries say "Raised", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「Performance-linked compensation and other compensation are cash compensation based on EBITDA for each fiscal year and the achievement rate of the management plan, including sustainability-related items such as human capital and environmental initiatives, in order to heighten awareness of pursuing profits across the Group and increasing corporate value. The amount is calculated according to the recipient's position and paid monthly.」
The performance-linked compensation metrics were fleshed out from the previous explanation centered on consolidated ordinary profit into a plan incorporating EBITDA for each fiscal year, the management plan achievement rate, and sustainability items such as human capital and the environment. - 2026-05-25RestatedGeneral Meetings of Shareholders
「Performance-linked compensation and other compensation will be monetary compensation based on EBITDA for each fiscal year and the achievement rate of the management plan, including sustainability-related items such as human capital and environmental initiatives, in order to raise awareness of pursuing profits across the Group and enhancing corporate value. The amount calculated according to the individual’s position will be paid monthly.」
The company reaffirmed its policy of using EBITDA, management-plan achievement rates, and sustainability items including human capital and the environment as performance-linked compensation metrics. - FY2026-H1AchievedAnnual report
「The target for consolidated ordinary profit in the previous fiscal year, the metric used for performance-linked compensation in the current fiscal year, was ¥1,950 million, while the actual result was ¥2,062 million. Accordingly, the amount of performance-linked compensation, which had not been determined as of the filing date of the annual securities report (filed on 20 June 2025), was set at ¥17 million at a board meeting held after the general meeting of shareholders on 24 June 2025.」
Consolidated ordinary profit for the previous fiscal year was ¥2,062 million against the performance-linked compensation target of ¥1,950 million, and performance-linked compensation was set at ¥17 million. - FY2025RaisedAnnual report
「We have proposed, as an agenda item for approval at the annual general meeting of shareholders scheduled for 24 June 2025, the “Introduction of a Stock Compensation Plan for Directors.” If the proposal is approved, performance-linked compensation and other compensation will be cash compensation based on EBITDA for each fiscal year and the achievement rate of the management plan, including sustainability-related items such as human capital and environmental initiatives, in order to heighten awareness of pursuing profits across the Group and increasing corporate value. Non-monetary compensation and other benefits will be stock compensation.」
A proposed plan was presented that would incorporate EBITDA, the management plan achievement rate, sustainability items such as human capital and the environment, and stock compensation, in addition to the existing performance-linked compensation based on consolidated ordinary profit. - FY2022Disclosure of performance-linked compensation resultsAnnual report
「The consolidated ordinary profit used as the performance-linked compensation metric for the current fiscal year was targeted to turn profitable, but the actual result was a loss of ¥7,901 million. The compensation amount was determined at a board meeting held after the general meeting of shareholders on 24 June 2021.」
For performance-linked compensation based on consolidated ordinary profit, the actual result was a loss of ¥7,901 million against the target of turning profitable, and the company disclosed that the compensation amount had been reduced. - FY2021First statedAnnual report
「Director compensation is structured to be linked to shareholder interests so that it functions sufficiently as an incentive for the sustainable enhancement of corporate value. Our basic policy is to set compensation at an appropriate level based on each director’s responsibilities when determining individual compensation.」
A policy was presented separately for the first time under which directors' compensation would be linked to shareholder returns and corporate value, and compensation for executive directors would consist of fixed compensation and performance-linked compensation.