Performance-linked compensation and alignment with shareholder interests
First written in FY2018. 1 of 7 entries say "Restated". Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 117 companies on the "Worse" side.
- FY2026Continued failure to meet performance-linked targetsAnnual report
「Consolidated operating profit 135,800 125,526」
For consolidated operating profit, the performance-linked compensation metric, actual operating profit was ¥125.526 billion against a target of ¥135.8 billion, indicating that the target was not met. - FY2025Continued failure to meet performance-linked targetsAnnual report
「Consolidated operating profit 129,600 120,372 Return on equity (ROE) 11.7% 8.3%」
For the performance-linked compensation metrics, the Company discloses consolidated operating profit of ¥120.372 billion against a target of ¥129.6 billion, and ROE of 8.3% against a target of 11.7%. - FY2024Performance-linked targets not metAnnual report
「Consolidated operating profit 145,100 127,725 88.0」
For consolidated operating profit, the performance-linked cash compensation metric, the Company discloses a current-year target of ¥145.1 billion, actual operating profit of ¥127.725 billion, and an achievement rate of 88.0%. - FY2022RaisedAnnual report
「The standard compensation mix is 75% base compensation and 25% short-term incentive compensation. Medium- to long-term incentive compensation is set at 10% of the cumulative amount of the above annual compensation over 2 fiscal years, representing an effective performance-linked compensation ratio of 31.8%.」
The compensation mix has changed from 85% base compensation and 15% short-term incentive compensation to 75% base compensation and 25% short-term incentive compensation, expanding the performance-linked component. - FY2020AdvancedAnnual report
「As a standard compensation mix based on the level of responsibility, base compensation accounts for 85% and short-term incentive compensation for 15%. Medium- to long-term incentive compensation is set at 10% of the cumulative amount of the above annual compensation over 2 fiscal years. Short-term incentive compensation varies from 0% to 150% of the standard amount according to the achievement of annual performance targets, including company-wide and individual targets. Medium- to long-term incentive compensation varies from 0% to 200% according to performance against company-wide and individual targets during each 2-fiscal-year performance period.」
The Company specifies the mix of base, short-term, and medium- to long-term performance-linked compensation, the 1-year and 2-fiscal-year evaluation periods, and the range of potential payouts. - FY2019RestatedAnnual report
「Performance-linked compensation consists of bonuses linked to annual business performance and other factors as short-term incentive compensation, and share-based compensation as medium- to long-term incentive compensation. For the latter, quantitative targets for company performance and other factors are set in advance for each 2-fiscal-year performance period, and the Company's common shares are delivered after the period ends based on the achievement rate of those targets.」
The Company has reconfirmed a system under which short-term bonuses and share-based compensation over 2-fiscal-year periods are treated as performance-linked compensation and linked to company performance and shareholder returns. - FY2018First statedAnnual report
「Performance-linked compensation consists of bonuses linked to annual business performance and other factors as short-term incentive compensation, and share-based compensation as medium- to long-term incentive compensation. For the latter, quantitative targets for company performance and other factors are set in advance for each 2-fiscal-year performance period, and the Company's common shares are delivered after the period ends based on the achievement rate of those targets.」
The Company has structured short-term bonuses and share-based compensation over 2-fiscal-year periods as performance-linked compensation, with a 3-year transfer restriction on the shares delivered.