Performance-linked compensation tied to consolidated ordinary profit and payment suspension until financial recovery
First written in FY2022. 2 of 4 entries say "Reframed", first in FY2024. Latest entry: FY2026.
The Royal Hotel,Limited moved to the "Worse" side of this theme in 2024, the same year as the typical company in this theme.
The whole theme swung hardest in 2017: 2 of 16 companies on the "Worse" side.
59 other companies' latest entry also says "Advanced".
- FY2026AdvancedAnnual report
「Performance-linked compensation for each executive = standard performance-linked compensation + (standard performance-linked compensation × performance evaluation factor)」
The company disclosed a specific performance-linked compensation structure using a factor of 0% for achievement rates below 35% of the consolidated ordinary profit target, the same rate for achievement rates from 35% to 110%, and 110% for achievement rates above 110%, together with a 0% to 10% performance evaluation factor based on engagement points for the department in charge. - FY2025ReframedAnnual report
「At a meeting of the Nomination and Compensation Committee held on 14 May 2025, a review of the performance-linked compensation structure for fiscal 2025 was deliberated. The Board of Directors is scheduled to resolve the matter in accordance with the results of the committee's deliberations at a meeting to be held after the 99th Annual General Meeting of Shareholders, scheduled for 24 June 2025. In that case, the method for determining the amount of performance-linked compensation and other such compensation for fiscal 2025 will be as follows.」
The company indicated plans to review the performance-linked compensation structure for fiscal 2025 to use a performance evaluation factor based on engagement points for the departments in charge, in addition to the achievement rate for the consolidated ordinary profit target. - FY2024ReframedAnnual report
「Performance-linked compensation and other such compensation are cash compensation reflecting performance indicators, intended to raise awareness of improving performance in each fiscal year. The amount calculated according to the degree of achievement against the target for each fiscal year is paid as a bonus at a fixed time each year. At a meeting of the Nomination and Compensation Committee held on 13 May 2024, a review of the performance-linked compensation structure for fiscal 2024 was deliberated, and the Board of Directors resolved that it would adopt the results of the committee's deliberations.」
The previous policy of suspending payments until the financial position was restored was reorganized into a revised performance-linked compensation structure combining the achievement rate for the consolidated ordinary profit target with employee engagement and the president's evaluation. - FY2022First statedAnnual report
「Performance-linked compensation and other such compensation are cash compensation reflecting performance indicators, intended to raise awareness of improving performance in each fiscal year. The amount calculated according to the degree of achievement against the target consolidated ordinary profit for each fiscal year is paid as a bonus at a fixed time each year. The performance indicators used as targets are set to align with the Medium-Term Management Plan and are reviewed as appropriate in response to changes in the operating environment, taking into account the recommendations of the Nomination and Compensation Committee. However, payment of performance-linked compensation and other such compensation will be suspended until a stable financial position has been restored.」
The company stated for the first time its policy of linking performance-linked compensation to the achievement rate for the consolidated ordinary profit target and suspending payments until a stable financial position is restored.