Executive Compensation Policy, Including Performance-Linked Bonuses
First written in FY2017. 3 of 8 entries say "Reframed", first in FY2019. Latest entry: FY2025.
- FY2025AdvancedAnnual report
「The ratio of fixed compensation to performance-linked compensation is set at approximately 6 to 4. Short-term incentives are based on one-year consolidated revenue and operating profit, ARR (annual recurring revenue) and other factors. Medium- to long-term incentives are determined based on the progress and achievement of quantitative targets for consolidated revenue, operating profit and the KPIs in the medium-term management plan, as well as qualitative targets for non-financial objectives, set over 3 years.」
The compensation system is operated with three types of compensation: basic compensation, short-term incentives and medium- to long-term incentives, with fixed compensation and performance-linked compensation set at approximately 6 to 4. One-year indicators include revenue, operating profit and ARR, while three-year indicators include ROE and non-financial targets. - FY2024ReframedAnnual report
「Directors' compensation consists of three types: basic compensation, which is fixed compensation; short-term incentives, which are performance-linked compensation; and medium- to long-term incentives, which are also performance-linked compensation.」
Following a resolution of the Board of Directors on 26 April 2024, the compensation system was restructured from the previous basic compensation and bonuses into three types: basic compensation, short-term incentives, and medium- to long-term incentives. Evaluation factors include one-year and three-year performance, ARR, ROE and governance. - FY2023ReframedAnnual report
「The Company's performance-linked bonuses are determined comprehensively based on consolidated ordinary profit, position and responsibilities, contributions to the business and other factors. Performance-linked compensation is paid as cash bonuses using consolidated ordinary profit as the performance indicator. Bonus amounts are determined with reference to the actual consolidated ordinary profit for each fiscal year, and no target is set. Consolidated ordinary profit for the fiscal year was ¥5,643 million.」
For performance-linked bonuses, the Company again explicitly identifies consolidated ordinary profit as the indicator and specifies that no target is set and that amounts are determined with reference to actual results. - FY2021RestatedAnnual report
「The compensation policy provides for basic compensation to account for approximately 7 parts and bonuses 3 parts of total compensation. Basic compensation is fixed monthly cash compensation, while bonuses are paid once a year within 3 months after the end of the fiscal year.」
The policy sets the ratio of basic compensation to performance-linked bonuses at approximately 7 to 3 and specifies the timing of payments. - FY2020AdvancedAnnual report
「The Company established the Nomination and Compensation Committee in May 2019. From the current fiscal year, individual directors' compensation will be submitted to the Board of Directors for recommendation after deliberation by the Nomination and Compensation Committee and will be determined by the Board of Directors.」
The Company established the Nomination and Compensation Committee and introduced a process under which the Board of Directors determines individual directors' compensation after committee deliberation and recommendation. - FY2019ReframedAnnual report
「Compensation for directors, excluding directors who are Audit and Supervisory Committee members and non-executive directors, who are referred to below as executive directors, consists of basic compensation and performance-linked compensation. Basic compensation is set according to position, responsibilities and other factors. Performance-linked compensation is structured to clarify the linkage between compensation and company performance and to encourage contributions to the sustained improvement of corporate value and the common interests of shareholders through improved company performance, with its proportion of total compensation set as appropriate.」
The framework has been restructured from the previous general reference to considering performance, position and evaluation, clearly separating basic compensation from performance-linked compensation and using revenue, operating profit, net profit margin and ROE as indicators under the medium-term plan. - FY2018SoftenedAnnual report
「Directors' compensation is determined by resolution of the Board of Directors within the aggregate compensation limit approved by the General Meeting of Shareholders, taking into account the Company's performance, each director's position and evaluation, economic conditions and other factors.」
The specific linkage method previously described, whereby the total bonus pool was calculated based on consolidated ordinary profit, is no longer stated, and the wording has become a general description referring to company performance, position, evaluation and economic conditions. - FY2017First statedAnnual report
「Compensation for directors, excluding outside directors, consists of fixed compensation based on position and performance-linked bonuses. The total bonus pool is calculated based on consolidated ordinary profit and allocated based on each director's position, evaluation and other factors.」
The policy provides for in-house directors' compensation to consist of fixed compensation and performance-linked bonuses, with the total bonus pool calculated based on consolidated ordinary profit.