Directors' Remuneration

Remuneration System Designed for Sustainable Improvement Corporate-value

The remuneration of the Company’s officers is comprised of fixed remuneration, performance-based remuneration, and stock compensation. The policies for determining their pay ratios are decided by giving consideration to the provision of appropriate incentives for improving business performance for each fiscal year and increasing medium- to long-term corporate value after receiving the findings of the Nomination & Remuneration Committee. Outside Directors are paid fixed remuneration only in light of their responsibilities and from the perspective of emphasizing autonomy.
The Board of Directors decides on their remuneration policy after receiving the findings of the Nomination & Remuneration Committee in order to ensure the objectivity of the policy and the systems and operations for distributing remuneration. The Nomination & Remuneration Committee then decides on the fixed remuneration and performance-based remuneration amounts to be paid to individual Directors.
The amount of annual payment that serves as the basis for the number of shares with restrictions on transfer to be allotted will be determined by a resolution of the Board of Directors within the remuneration limit. The majority of Directors appointed as members of the Nomination & Remuneration Committee are Outside Directors, and the committee’s chairperson is an independent Outside Director. This is to ensure objectivity and fairness in the decisions regarding remuneration.
In order to raise awareness of improving the Company’s performance in each fiscal year, the Company sets consolidated net profit and segment profit as the performance indicator targets for a single fiscal year. An amount calculated in accordance with the degree of achievement of the targets set for each officer is paid as performance-based remuneration at a certain time each year. Consolidated net profit and segment profit were selected as performance indicators as they enable a comprehensive judgment of the degree of contribution to the short-, medium-and long-term performance of the Company, and are objective and quantitative evaluation indicators that apply to all officers and employees.
The amount of performance-based remuneration is computed each fiscal year by multiplying the quantitative evaluation portion, which is calculated by multiplying the amount of position-specific remuneration by a certain coefficient in accordance with the achievement of business results, by a certain adjustment coefficient determined by the Nomination & Remuneration Committee in order to adjust and take into account variable factors such as special factors and unforeseen matters.
The targets and results for the main quantitative indicators in fiscal 2023 are as follows: consolidated net income of ¥15 billion (actual result of ¥17.7 billion); Space business segment income of ¥13.5 billion (actual result of ¥15.5 billion); and Media business segment income of ¥2 billion (actual result of ¥2.5 billion).

Remuneration for Directors and Corporate Auditors

• Total remuneration does not include total remuneration as officers of the Company’s subsidiaries for the Company’s Board Directors who concurrently serve as the Board Director of those subsidiaries amounting to ¥124 million (fixed remuneration of ¥92 million, performance-based remuneration of ¥31 million).
• The above table includes two (2) Outside Board Directors and one (1) Outside Corporate Auditor who retired at the conclusion of the 16th Annual General Meeting of Shareholders held on July 23, 2023.