Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

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

There Is Also a Difference in Perspective Between Investors and Companies on the Remuneration System

Disclosure of Individual Board Directors' Remuneration Has Not Progressed

The Gap with Investors' Perspective Stems from Managers Trying to Distance Themselves from Investors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>More large companies adopting ROIC as a KPI for executive compensation can be viewed as a positive change, indicating a growing awareness of capital costs and capital profitability among companies.</li>
<li>Shifting the growth strategy from sales and profits to capital profitability, and aligning the KPIs for that growth strategy with executive compensation KPIs, is also consistent with the investor perspective.</li>
<li>However, adopting ROIC as a KPI for growth strategies and its integration into management practices has only just begun at large companies, and issues surrounding executive compensation remain unresolved.</li>
</ul>


More large companies adopting ROIC as a KPI for executive compensation can be viewed as a positive change, indicating a growing awareness of capital costs and capital profitability among companies.
Shifting the growth strategy from sales and profits to capital profitability, and aligning the KPIs for that growth strategy with executive compensation KPIs, is also consistent with the investor perspective.
However, adopting ROIC as a KPI for growth strategies and its integration into management practices has only just begun at large companies, and issues surrounding executive compensation remain unresolved.


Adopting ROIC as a KPI Is Positive, but the Issue of Executive Compensation Remains Unresolved

TSE Tokyo Price Index TOPIX

Adopting ROIC as a KPI Is Positive, but the Issue of Executive Compensation Remains Unresolved