Incentive-Based Executive Compensation Linked to the Achievement of Key Tasks
First written in FY2019. 5 of 6 entries say "Advanced", first in FY2020. Latest entry: FY2026.
The whole theme swung hardest in 2024: 13 of 118 companies on the "Worse" side.
- FY2026AdvancedAnnual report
「Regarding compensation for representative directors and executive directors, the Company partially revised at a meeting of the Board of Directors held on 22 March 2024 the monetary executive compensation system resolved at the meeting held on 19 May 2023. The system includes an incentive component linked to medium- to long-term performance, with the objectives of enhancing the Company's corporate value over the medium to long term, realizing a sustainable society, and securing outstanding personnel, and has applied since July 2024. Evaluation items: consolidated net sales 30%, consolidated operating profit 40%, ROE 30%」
The executive compensation system has been operated as the revised system applicable from July 2024, with evaluation weights of 30%, 40% and 30% for consolidated net sales, consolidated operating profit and ROE, respectively, and thresholds for payout rates specified. - FY2024AdvancedAnnual report
「At a meeting of the Board of Directors held on 19 May 2023, the Company resolved to introduce a monetary executive compensation system for representative directors and executive directors that includes an incentive component linked to medium- to long-term performance, with the objectives of enhancing the Company's corporate value over the medium to long term, realizing a sustainable society, and securing outstanding personnel. The system has applied since July 2023.」
The policy of introducing compensation linked to key tasks and performance progressed to the implementation stage as the current system applicable from July 2023. The calculation method, using net sales, operating profit and ROE as evaluation items, was also specified. - FY2022AdvancedAnnual report
「At a meeting of the Board of Directors held on 24 June 2021, the Company resolved to establish a Nomination and Compensation Committee comprising 5 members: the representative director, the chair of the Audit and Supervisory Committee, and 3 independent outside directors. The committee was assigned the role of advising the Board of Directors on evaluations related to activities from fiscal 2021 onward and changes to evaluation criteria.」
In addition to the executive compensation system linked to key tasks and operating profit, the establishment of a Nomination and Compensation Committee comprising the representative director, the chair of the Audit and Supervisory Committee, and independent outside directors, as well as its advisory function, was specified. - FY2021AdvancedAnnual report
「Monthly monetary compensation applicable to representative directors and executive directors is calculated by multiplying the prior fiscal year's monetary compensation by a 4-level evaluation index based on achievement of “consolidated operating profit plus the operating profit of the director's division” and “key tasks.” The difference in monetary compensation may be up to 20% for the president and up to 15.8% for other executive directors in the same position.」
The executive compensation system linked to achievement of key tasks and performance was disclosed as the current system, with a specific calculation method, 4-level evaluation and maximum range of variation, rather than merely as a planned introduction. - FY2020AdvancedAnnual report
「The Company's current executive compensation includes incentives as consideration for improved performance and corporate value, with the aim of achieving sustainable corporate growth and securing outstanding personnel. The incentive component is monetary compensation linked to the degree of achievement of key tasks undertaken to improve current-period and medium-term performance.」
The executive compensation system including incentives linked to achievement of key tasks, which had been presented in the previous fiscal year as a policy to be introduced from the following fiscal year, was described in the current fiscal year as the current compensation policy. - FY2019First statedAnnual report
「The Board of Directors resolved to change executive compensation from the following fiscal year to a system including incentives as consideration for improved performance and corporate value, with the aim of achieving sustainable corporate growth and securing outstanding personnel. The incentive component will be monetary compensation linked to the degree of achievement of key tasks undertaken to improve current-period and medium-term performance.」
The Company presented a policy of changing from a system that reduced standard compensation according to performance results to monetary compensation linked to achievement of key tasks. The system was scheduled to apply to representative directors and executive directors from executive compensation for fiscal 2020, with fiscal 2019 as the evaluation period.