Executive Compensation Policy Linking Pay to Performance and Reflecting Responsibilities and Results
First written in FY2018. 2 of 6 entries say "Advanced", first in FY2025. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「Total compensation for directors, excluding outside directors, was ¥202 million, comprising ¥111 million in fixed compensation and ¥91 million in performance-linked compensation.」
While continuing to disclose the performance-linked compensation system, indicators and cap, the company reported fiscal-year actuals of ¥111 million in fixed compensation, ¥91 million in performance-linked compensation and ¥202 million in total compensation. - FY2025AdvancedAnnual report
「Total compensation for directors, excluding outside directors, was ¥187 million, comprising ¥107 million in fixed compensation and ¥80 million in performance-linked compensation.」
In addition to disclosing the indicators for performance-linked compensation, the 50% cap and the decision-making procedure based on recommendations from the Compensation Advisory Committee, the company disclosed the actual amounts of fixed and performance-linked compensation for the fiscal year. - FY2022Specified the compensation ratio, cap and decision-making procedure.Annual report
「Performance-linked compensation is paid within a range not exceeding 50% of total individual compensation. The indicators used for the company's performance-linked compensation include consolidated revenue, consolidated ordinary profit, consolidated ROE and share price.」
The company reaffirmed its policy of capping performance-linked compensation at 50% of total individual compensation and using consolidated revenue, ordinary profit, ROE and share price as indicators. The limit on directors' compensation was set at no more than ¥310 million per year. - FY2021Specified the KPIs, compensation cap and operating method.Annual report
「Performance-linked compensation consists of cash compensation reflecting performance indicators (KPIs) designed to heighten awareness of improving performance in each fiscal year, bonuses linked to performance and targets for the executive's area of responsibility, and medium-term incentives added only when the achievement rate against medium-term performance and share-price targets exceeds a specified threshold. It is to be paid annually at a specified time. Performance-linked compensation is paid within a range not exceeding 50% of total individual compensation. The indicators used for the company's performance-linked compensation include consolidated ordinary profit, consolidated revenue, consolidated ROE and share price.」
The company specified the structure of performance-linked compensation, consisting of bonuses and medium-term incentives, its annual payment, the cap of 50% of total individual compensation, and indicators including consolidated ordinary profit, consolidated revenue, consolidated ROE and share price. - FY2020Specified the indicators and calculation method for performance-linked compensation.Annual report
「The company's executive compensation is classified according to whether the executive performs operational duties. Compensation for executives who perform operational duties, excluding outside directors and audit & supervisory board members, consists of base compensation determined by position and bonuses linked to performance and targets for their areas of responsibility. A medium-term incentive is added only when the achievement rate against performance and share-price targets exceeds a specified threshold.」
The company specified the structure of performance-linked compensation, consisting of base compensation, bonuses and medium-term incentives, and the mechanism based on achievement rates against performance and share-price targets. - FY2018First statedAnnual report
「The company's policy for determining executive compensation is to ensure that it is linked to performance and reflects responsibilities and results.」
The company has, for the first time, expressly stated its policy of ensuring that executive compensation is linked to performance and reflects responsibilities and results.