Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

Employee Stock Compensation Plans Need to Be Designed to Increase Employee Engagement

What Is Needed for More Engagement to Be Effective Is to Reduce Policy Shareholdings

Fewer Companies Still Use Capital Efficiency Such as ROE as KPIs for Variable Compensation

Determine Whether Shareholder Return Is a Temporary Measure or a Shift to Value-Creating Management

The Key to Higher ROE Is Higher Profit Margins and Faster Efforts by Smaller Companies

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>It's understandable that compensation is paid for managing a global business and achieving significant growth, but it's also paid for bloated performance in yen terms due to the weak yen.</li>
<li>Employee engagement is very important for value-added products and more money should be spent on human capital. Otherwise, higher profit margins are unlikely to be achieved.</li>
<li>The election of directors at AGMs rarely results in rejection of the company's proposal. Cross-shareholdings should be reduced so that managers whose “employment” is protected by cross-shareholdings don't receive commensurate compensation.</li>
</ul>


It's understandable that compensation is paid for managing a global business and achieving significant growth, but it's also paid for bloated performance in yen terms due to the weak yen.
Employee engagement is very important for value-added products and more money should be spent on human capital. Otherwise, higher profit margins are unlikely to be achieved.
The election of directors at AGMs rarely results in rejection of the company's proposal. Cross-shareholdings should be reduced so that managers whose “employment” is protected by cross-shareholdings don't receive commensurate compensation.


Fair for Managers Who Are Protected by Cross-Shareholding and Get Inflated Payout Due to Weak Yen?

TSE Tokyo Price Index TOPIX

Fair for Managers Who Are Protected by Cross-Shareholding and Get Inflated Payout Due to Weak Yen?