Corporate Officer Compensation

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Compensation paid to the Company's corporate officers in the year ended March 31, 2019, 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
Shares with Restrictions on transfer Stock option Other
Directors
(excluding Outside
Directors)
216 160 - 56 - - 6
Executive Officers 1,186 717 36 355 34 44 14
Outside Directors 90 70 - 20 - - 5
  • Note: 1. This is calculated under JGAAP.

  • 2. 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 ¥1,273 million (¥305 million for 11 directors and ¥968 million for 14 executive officers).

  • 3. The compensation for executive officers includes single annual and medium to long-term performance-based compensation of ¥36 million booked in the fiscal year under review (with respect to 7 executive officers).

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

  • 5. One officer is 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 Shares with Restrictions on transfer Stock option Other
Yoichiro Ushioda Director LIXIL Group Corporation 14 10 - 4 - -
Executive Officer LIXIL Group Corporation 137 105 - 32 - -
Director LIXIL INTERNATIONAL Pte. Ltd. 4 4 - - - -
Kinya Seto Executive
Officer
LIXIL Group Corporation 442 183 - 225 34 -
Jin Song Montesano Executive
Officer
LIXIL Group Corporation 132 59 19 10 - 44
  • Note: 1. Stock options are booked as expenses in the fiscal year under review with regard to the 9th share acquisition rights, and differ from the amounts obtained from the actual execution and sale.

  • 2. "Other" consists of factors such as cost of living assistance and medical insurance associated with overseas postings.

3. Policy to Determine Remuneration Amount and Calculation Method

Basic Policy Regarding Compensation

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 management policy.

  • Leverage performance related compensation in order to provide effective incentives designed to optimize short, medium, long term business results and corporate value.
  • Attract and retain the best global talent necessary to maintain sustainable growth.
  • Use a fair and reasonable decision-making process with regards to compensation that will provide accountability to shareholders and employees and all stakeholders.
  • Conduct comparative evaluation with domestic and foreign companies in order to ensure transparency and objectivity.
  • Determine individual compensation in accordance with role and responsibility, performance contribution, and company performance.

Compensation Scheme

Separate compensation schemes are provided for Directors, who are responsible for supervising the Company’s management, and Executive Officers, who are responsible for execution of business. When a Director serves as an Executive Officer, the compensation scheme of the Executive Officer shall be applied in principle.

Compensation Structure

Director

  • Fixed compensation (Base pay)
  • Stock price-linked compensation (Phantom stock plan)

Executive Officer

  • Fixed compensation (Base pay)
  • Compensation linked to business result
  • Stock price-linked compensation (Phantom stock plan)

Compensation for each individual Director and Executive Officer shall be deliberated and decided separately in accordance with the basic policy of compensation. The Executive Officer's compensation structure is designed to enhance motivation to improve short and medium-long-term performance and corporate value.

Guidelines for Compensation Level

Compensation level guidelines shall be determined based on the degree of achievement of the previous fiscal year's performance targets and the external management environment, etc. after comparative verification using data from outside remuneration consultants.

Compensation Component

  • Fixed compensation (Base pay): Examined and determined by role using data from outside remuneration consultant.
  • Performance-based compensation: Determined based on the Company’s financial result on annual basis. The target payment amount shall be set at a fixed percentage of the base pay. The amount paid shall fluctuate within a range from 0% to 200%. As for performance-linked compensation, KPIs (Key Performance Indicators) are set as important indicators in the company-wide management targets for the fiscal year under review.
  • Stock price-linked compensation plan (Phantom stock plan): Through the introduction of the phantom stock plan as a common compensation system for all Directors, Executive Officers and overseas executives, the Company expedites the appointment of officers across organizations and regions, and ensures officers and overseas executives can be flexibly transferred. The Company decided the introduction of the phantom stock plan in October 2019 to replace the stock-based compensation.
  • Others: Other compensation schemes may be applied after individual deliberation.

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