Corporate Officer Compensation

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Compensation paid to the Company's corporate officers in the year ended March 31, 2017, was as per the following tables.

1. Total amount of compensation by corporate officer title, by type of compensation, and number of officers receiving

Corporate officer title Total
compensation
(Millions of yen)
Total compensation by type (Millions of yen) Number of corporate officers eligible for compensation
Basic compensation Performance-based
compensation
Stock option Other
Directors
(excluding Outside
Directors)
201 190 - 11 - 4
Executive Officers 1,393 682 452 63 196 13
Outside Directors 81 77 - 4 - 6
  • Note: 1. The total compensation shown above consists of both the compensation paid by the Company and the compensation paid by the Company's subsidiaries. The amount paid by the Company was ¥1,563 million (¥277 million for 10 directors and ¥1,286 million for 13 executive officers.)

  • 2. The total compensation paid to the three directors who also served as executive officers as of the end of the fiscal year under review, and the number of these executive officers, are included in the total amount of compensation paid to executive officers and the total number of executive officers. Furthermore, the total compensation corresponding to the period during which they assumed concurrent duties paid to the three directors who also served as executive officers during the fiscal year under review, and the number of these executive officers, are included in the total amount of compensation paid to executive officers and the number of the directors is added to the number of executive officers.

  • 3. The performance-based compensation for executive officers includes single annual and medium- to long-term performance-based compensation of ¥452 million booked in the fiscal year under review (with respect to 12 executive officers.)

  • 4. The total number of Directors and executive officers eligible to receive stock options is 18.

  • 5. Two officers are eligible for "Other."

2. Total compensation of officers receiving ¥100 million or more

Name Corporate
officer title
Company Total
compensation
(Millions of yen)
Total compensation by type (Millions of yen)
Basic compensation Performance-based compensation Stock option Other
Yoichiro Ushioda Director LIXIL Group Corporation 119 111 - 8 -
Director LIXIL INTERNATIONAL Pte. Ltd. 5 5 - - -
Yoshiaki Fujimori Executive
Officer
LIXIL Group Corporation 159 50 101 8 -
Kinya Seto Executive
Officer
LIXIL Group Corporation 526 185 160 31 150
Hwa Jin Song Montesano Executive
Officer
LIXIL Group Corporation 124 56 15 7 46
  • Note: 1. Stock options are booked as expenses in the fiscal year under review with regard to the 7th, 8th, or 9th share acquisition rights, and differ from the amounts obtained from the actual execution and sale.

  • 2. "Other" consists of allowances made for disparities in compensation compared with previous positions and such factors as cost of living assistance and medical insurance associated with overseas postings.

3. Policy for determining the amount and method of calculation of corporate officers' compensation and decision-making method

Basic policy on compensation, etc.

The Company's policy on the compensation plan for corporate officers is to implement a fair compensation structure that will motivate each corporate officer to execute his or her duties in order to meet shareholders' expectations and fulfill the Company's business policy.

  • Performance accountability of individuals and companies shall be clearly established, and a system shall be devised that will reward corporate officers with appropriate compensation upon the achievement of a goal in order to motivate corporate officers to attain the goals set.
  • A stock option plan shall be provided to allow for the reflection of continual enhancement of corporate value, in addition to which a medium-to-long term cash plan shall be adopted to provide incentives to executive officers, who are responsible for the execution of business operations, to attain medium-term business plan targets.
  • The compensation system shall be performance-based compensation to allow for appropriate reflection of the company's consolidated performance.
  • In order to ensure the objectivity and transparency of directors' compensation, the Compensation Committee shall assess the Company's compensation level by comparing it with objective external indicators and manage it to ensure that the level is commensurate with the relevant duties and performance.
  • Compensation levels shall be set to be sufficient to retain, for the long-term, competent, worldwide human resources who are indispensable to the Company's sustainable growth.

Compensation structure

Under the corporate officers' compensation structure, there shall be separate structures for directors, who are responsible for governance, and executive officers, who are responsible for the execution of business operations, in order to reflect the differences in their roles. In the case of a director who is concurrently serving as an executive officer, the compensation plan for executive officers shall be applied.

[Compensation structures for directors and executive officers]

  • A director's compensation shall consist of basic compensation and stock options.
  • An executive officer's compensation shall consist of basic compensation, performance-based compensation linked to single fiscal year-end and medium-to-long term earnings, and stock options. For personnel recruited to senior positions among overseas nationals, an expatriate package will be provided with tax equalization and other incidental conditions generally offered at global companies.

[Description of compensation by type]

  • Basic compensation, as a fixed compensation, shall be maintained at an appropriate level through comparison with objective external indicators. The basic compensation for executive officers shall be structured such that a certain percentage thereof fluctuates in accordance with the level of achievement of business targets set for the relevant department in order to reward executive officers for achieving goals.
  • Performance-based compensation shall be determined on the basis of corporate performance for The current fiscal period and over the medium-to-long term reflecting the attainment of medium-term plan targets, to avoid compensation being based only on short-term performance.
  • Performance-based compensation linked to a single fiscal year shall be allocated as an annual bonus reflecting earnings in the current fiscal period. Performance-based compensation based on corporate performance over the medium-to-long term is to be allocated after the end of a specified period conditional on the attainment of medium-term business plan targets within previously specified limits.
  • Stock options, provided as a medium-to-long-term incentive in line with the interest of shareholders, shall be determined on the basis of corporate performance, the position of the relevant corporate officer, and other criteria.
  • With personnel recruited to senior positions from overseas, an allowance may be made to make up for disparities in compensation compared with previous positions and such factors as cost of living assistance and medical insurance associated with overseas postings.

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