Corporate Governance | Compensation for Directors and Executive Officers
Nomura Holdings has two basic compensation policies for directors and executive officers. One is a flexible system for determining compensation based on performance relative to management targets. This is aimed at increasing motivation and empowering individuals to maximize performance. The second is the introduction of equity-based compensation to enhance long-term incentives. Compensation for directors and executive officers is composed of the following three components.
Base Salary
The base salary of each director and executive officer is the sum of amounts based on each individual's career, post and responsibilities, and the degree to which the consolidated ROE target has been achieved.
ROE-Linked Base Salary
| Consolidated ROE |
Base salary |
| Under 0% |
0 |
| 0% to 5% |
1/3 of standard salary |
| 5% to 10% |
2/3 of standard salary |
| 10% to 15% |
Standard salary |
| Over 15% |
4/3 of standard salary |
Cash Bonus
The cash bonus is based on quantitative factors such as consolidated net income, ROE, and earnings of business divisions.
This bonus is also based on qualitative items, such as the degree to which management targets and personal targets have been met, assessments of individual contributions, and other factors. The aggregate cash bonuses of directors and executive officers may not exceed 1% of consolidated net income.
Stock Bonus
The stock bonus is determined separately for each individual by taking into consideration all applicable factors. These include parameters such as consolidated net income and ROE, as well as the level of this compensation relative to the base salary, cash bonus, and other stock bonuses and the benefits relative to the cost of providing such bonuses.
