Outline of the policy to determine the contents of remuneration paid to Corporate Officers
At its meeting held on March 1, 2021, the Board of Directors of the Company passed a resolution on the policy to determine the contents of remuneration paid to each Director. The Board of Directors sought and received advice from the Remuneration Committee before passing this resolution.
Policy to determine the remuneration paid to Corporate Officers
The Company shall provide remuneration that emphasizes the linkage with financial results and medium- to long-term corporate value, to share the same value with shareholders.
Remuneration shall be set at levels that can attract and retain excellent human resources with global competitiveness.
Remuneration shall emphasize transparency and fairness to be able to fulfill accountability.
Process to determine remuneration paid to Corporate Officers and content of remuneration
In order to ensure the transparency and fairness of the process to determine remuneration for Officers, a Remuneration Committee has been established as an advisory panel to the Board of Directors.
The Remuneration Committee is composed of the President and CEO, Outside Directors, and an Audit & Supervisory Board Member and is chaired by an Independent Outside Director to ensure the objectivity of deliberations. It deliberates and reports on matters pertaining to remuneration for Officers such as remuneration policy, plan, calculation methods, and specific remuneration content of individual Officers.
Within the limit of remuneration approved at the General Meeting of Shareholders, specific remuneration of Directors is deliberated on an individual basis by the Remuneration Committee based on the amounts of remuneration calculated based on the relevant rules and regulations established by the Company and are determined by the Board of Directors based on the deliberation results of the Remuneration Committee.
Specific remuneration of each Audit & Supervisory Board Member is discussed at the Audit & Supervisory Board meeting.
|Type of remuneration||Remuneration item||Description||Form of payment|
|Basic remuneration||Fixed remuneration||
|Performance-based bonus||Performance-based remuneration (Single year)||
|Stock compensation-type stock options||Stock remuneration (Medium- to long-term)||
||Shares (Share acquisition rights)|
|Outside Directors||In the interest of maintaining independence, Outside Directors receive only "basic remuneration," with no performance-based remuneration.|
|Audit & Supervisory Board Members||In the interest of promoting audits of legality, Audit & Supervisory Board Members receive only "basic remuneration."|