Daily BriefsESG

Daily Brief ESG: The Ratio of Fixed Compensation in Executive Compensation Has Gradually Declined and more

In today’s briefing:

  • The Ratio of Fixed Compensation in Executive Compensation Has Gradually Declined, but Remains High


The Ratio of Fixed Compensation in Executive Compensation Has Gradually Declined, but Remains High

By Aki Matsumoto

  • As global companies changing to increase the proportion of variable compensation from the perspective of securing human resources, the proportion of fixed compensation is gradually declining, but still high. 
  • Since only executives who receive compensation of 100 million yen or more are required to be disclosed in annual securities reports, few companies disclose the compensation of all directors individually. 
  • In addition to the inability to verify whether the remuneration paid was appropriate, investors have doubts about the independence of the process by which the Remuneration Committee determines executive remuneration.

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