With respect to remuneration for Member of the Board of Directors, Murata Manufacturing Co., Ltd. makes it a basic policy to provide a system and level of remuneration that is considered suitable for executive-level managers of a globally competitive electronic equipment and component manufacturer in order to ensure recruitment of human talent considered to be excellent based on a comparison with same-industry competitors, to raise the morale and motivation to improve financial results, and to contribute to the maximization of corporate value.
Remuneration for Members of the Board of Directors who are not Audit and Supervisory Committee Members is made up of (i) monthly remuneration, (ii) bonus with the aim of giving a short-term incentive, and (iii) share-based remuneration with the aim of making them further share values with our shareholders by giving a medium- to long-term incentive.
The remuneration paid to Outside Directors who are not Audit and Supervisory Committee Members and to Member of the Board of Directors who are Audit and Supervisory Committee Members is monthly remuneration only.
The Remuneration Advisory Committee deliberates on the remuneration system and levels for Member of the Board of Directors and reports its findings to the Board of Directors. The Board of Directors decides on the standards regarding remuneration for Member of the Board of Directors based on the report from the Remuneration Advisory Committee.
Specific remuneration amounts are calculated in accordance with the remuneration standards. Individual remuneration of Members of the Board of Directors who are not Audit and Supervisory Committee Members is decided upon consultation with the Remuneration Advisory Committee.Remuneration for each Member of the Board of Directors who is an Audit and Supervisory Committee Member is decided as a fixed individual remuneration through discussion by the Members of the Board of Directors who are Audit and Supervisory Committee Members.
1. The above number includes one Member of the Board of Directors (who is not an Audit and Supervisory Committee Member) who retired during the fiscal year ended March 31, 2020.
2. Out of the total shown above, total compensation, etc., provided to six Outside Directors, is 86 million yen.
The monthly remuneration is a fixed remuneration of an amount individually decided for each Member of the Board of Directors based on a fixed amount for service as Member of the Board of Directors, and an amount that is decided based on consideration of the level of importance of each Member of the Board of Directors’ business execution allocation and responsibility and the previous fiscal year’s financial performance.
The total amount of bonus is decided according to the Company’s financial performance. The important indicator used as a standard for bonus calculation is consolidated operating income per person taking capital cost into account, which measures the growth and productivity increase of the corporation. The bonus calculation is not premised on a set target value, but is calculated by multiplying a reference amount for each position by a coefficient based on actual performance.
Restricted share remuneration leading to improved corporate value over the medium to long term. The share-based remuneration is set by position of each Member of the Board of Directors. It reflects their individual performance evaluations.
Overview of Murata's Corporate Governance System
History of initiatives to strengthen corporate governance
Nomination of candidates for Members of the Board of Directors
Remuneration for Member of the Board of Directors
Analysis and evaluation of effectiveness of the Board of Directors
Internal control system
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