Corporate Officer Compensation

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Compensation paid to the Company's corporate officers in the year ended March 31, 2018, 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)
151 151 - - - 4
Executive Officers 2,636 750 1,773 65 48 14
Outside Directors 78 78 - - - 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 ¥2,611 million (¥227 million for 10 directors and ¥2,384 million for 14 executive officers).

  • 2. The total compensation paid to the five 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 did not concurrently serve as executive officers for some period during the fiscal year under review, paid to the two directors 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 compensation for executive officers includes single annual and medium to long-term performance-based compensation of ¥1,773 million booked in the fiscal year under review (with respect to 13 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 Stock option Other
Yoichiro Ushioda Director LIXIL Group Corporation 57 57 - - -
Executive Officer LIXIL Group Corporation 60 60 - - -
Director LIXIL INTERNATIONAL Pte. Ltd. 5 5 - - -
Kinya Seto Executive
Officer
LIXIL Group Corporation 1,127 195 867 65 -
Ryuichi Kawamoto Executive Officer LIXIL Group Corporation 255 68 187 - -
Sachio Matsumoto Executive Officer LIXIL Group Corporation 270 68 202 - -
Haruo Shirai Executive Officer LIXIL Group Corporation 103 - 103 - -
Director LIXIL Corporation 117 63 54 - -
Jin Song Montesano Executive
Officer
LIXIL Group Corporation 195 56 91 - 48
Harumi Matsumura Executive Officer LIXIL Group Corporation 117 50 66 - -
Laurence William Bates Executive Officer LIXIL Group Corporation 139 55 84 - -
  • Note: 1. Performance-based compensation for the executive officers is the sum of the single annual performance-based compensation and the medium- to long-term performance-based compensation allocated as the fiscal year under review to be the end of that term.

  • 2. 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.

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

  • 4. Laurence William Bates left the Company as of March 31, 2018.

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

Basic Policy Regarding Directors' and Executive Officers' 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.

  • 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 who will be necessary to maintain sustainable growth.
  • Fair and reasonable decision process with regards to compensation that will provide accountability to shareholders and employees.
  • Conduct comparative evaluation with domestic and foreign companies in order to ensure transparency.
  • Individual compensation shall be determined in accordance with role and responsibility, performance contribution, economic environment, industry trends, and company performance.

Compensation Structure, Individual Compensation, and Compensation Component

Directors are responsible for giving the advice to and supervising the Company's management from an objective point of view. Executive officers are responsible for the execution of business. Accordingly, there shall be separate compensation schemes for each group in order to align with their different roles. When a director serves as an executive officer, the compensation scheme of the executive officer shall be applied in principle.

Compensation Structure

Director

  • Fixed-amount compensation (Base pay)
  • Compensation linked to stock price

Executive Officer

  • Fixed-amount compensation (Base pay)
  • Compensation linked to business result
  • Compensation linked to stock price

Compensation of personnel with advanced expertise, qualifications and knowledge, etc. shall be discussed and decided separately in accordance with the basic policy of compensation.

Individual Compensation

The individual amount of each component shall be determined in accordance with the above basic policy based on research provided by an outside compensation consultant to the Compensation Committee on an annual basis.

Compensation Component

  • Fixed-amount compensation (Base pay): Determined by role and responsibility in principle.
  • Compensation linked to business result: Determined based on the Company's financial result and individual performance on an annual basis. The amount paid shall fluctuate within a range from 0% to 200%.
  • Compensation linked to stock price: Restricted stock will be provided to incentivize directors and executive officers to increase long-term shareholder value.
  • Others: Compensation of personnel with advanced expertise, qualifications and knowledge, etc. shall be deliberated and decided separately in accordance with the basic policy of compensation.

Compensation Committee

In order to provide the best corporate governance, the majority of members and the chairperson shall be nonexecutive directors.

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