Directors’ Compensation Comprising Fixed and Performance-Linked Compensation
First written in FY2018. 4 of 8 entries say "Advanced", first in FY2022. Latest entry: FY2026.
- FY2026AdvancedAnnual report
「Consolidated order intake ¥94,000 million ¥100,230 million 30% 105.9% Consolidated operating profit ¥7,500 million ¥8,358 million 20% 114.7% Consolidated operating margin 7.5% 7.8% 20% 103.9% Net income attributable to owners of the parent ¥5,200 million ¥5,993 million 30% 115.4%」
For the 4 indicators used to evaluate bonuses for the fiscal year ended January 2026, achievement rates exceeded 100% for all of order intake, operating profit, operating margin and net income attributable to owners of the parent. - FY2025AdvancedAnnual report
「Consolidated order intake ¥86,650 million ¥111,152 million 30% 128.3% Consolidated operating profit ¥4,000 million ¥5,147 million 20% 128.7% Consolidated operating margin 4.8% 5.6% 20% 116.7% Net income attributable to owners of the parent ¥2,800 million ¥3,875 million 30% 138.4%」
For bonus evaluation for the fiscal year ended January 2025, achievement rates exceeded 100% for all 4 indicators, with disclosed results of 128.3% for order intake, 128.7% for operating profit, 116.7% for operating margin and 138.4% for net income. - FY2024AdvancedAnnual report
「Variable compensation will fluctuate according to the degree of achievement of targets for the following 4 indicators regarded as important for short-term performance evaluation: consolidated order intake, consolidated operating profit, consolidated operating margin, and net income attributable to owners of the parent,」
The 4 indicators, evaluation weights and payout rates by achievement level used to calculate bonuses were specifically disclosed. Achievement rates exceeded 100% for all 4 indicators in the fiscal year ended January 2024. - FY2023No bonus paid because profit target was not achievedAnnual report
「As performance for the fiscal year ended January 2023 fell significantly short of the target in terms of profit, no bonus was paid.」
Under a system using consolidated operating profit, consolidated operating margin and net income attributable to owners of the parent, among other measures, as bonus evaluation indicators, no bonus was paid for the fiscal year ended January 2023 because profit targets were not achieved. - FY2022AdvancedAnnual report
「Variable compensation will fluctuate according to the degree of achievement of targets for the following 4 indicators regarded as important for short-term performance evaluation: consolidated order intake, consolidated operating profit, consolidated operating margin, and net income attributable to owners of the parent,」
In addition to the fixed compensation, bonus and share-based compensation structure, the calculation method and evaluation weights linking bonuses to the degree of achievement of targets for 4 performance indicators were specified. - FY2021ReframedAnnual report
「Because directors, excluding outside directors and directors who are Audit and Supervisory Committee members, are responsible for improving performance in each fiscal year and enhancing corporate value over the medium to long term, their compensation comprises fixed and variable compensation (short-term incentives (bonuses) and medium- to long-term incentives (share-based compensation)).」
The explanation was clarified from fixed and performance-linked compensation to variable compensation comprising short-term bonuses and medium- to long-term share-based compensation, with variable compensation accounting for 50% or more of total compensation when targets are achieved. - FY2020RestatedAnnual report
「Because directors, excluding directors who are Audit and Supervisory Committee members, are responsible for improving performance in each fiscal year and enhancing corporate value over the medium to long term, their compensation comprises fixed and performance-linked compensation (bonuses and performance-linked share-based compensation).」
The policy of combining fixed compensation with bonuses and performance-linked share-based compensation continues. - FY2018First statedAnnual report
「Because directors, excluding directors who are Audit and Supervisory Committee members, are responsible for improving performance in each fiscal year and enhancing corporate value over the medium to long term, their compensation comprises fixed and performance-linked compensation.」
The policy of structuring director compensation as fixed and performance-linked compensation, to incentivize improvements in performance and corporate value over the medium to long term, was documented in a thread for the first time.