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.

Japan's Governance: Update On "Transitional Measures" For TSE Market Reorganization

Japan's Governance: TSE Survey "Information Disclosure in English”

Japan's Governance: Term of Office of Board Directors

Japan's Governance: Revision of CG Code and Concurrently Serving as Outside Directors

Japan's Governance: Parent Subsidiary Listing Investment Strategy Update

Smartkarma Webinar | Corporate Governance and Value Creation in Japan

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<p>In this article, I would like to focus on compensation incentives. As the table below shows, among the 1,722 companies in the Metrical Universe as of August 2021, 1,543 companies, or nearly 90%, have introduced some type of compensation incentive. Among the compensation incentives, performance-linked compensation is the most common, with more than 60% of the companies in our universe adopting performance-linked compensation. Only 23.5% of companies have adopted stock option plans. It is important to note that even if a company has adopted a stock option plan, it does not necessarily mean that it is currently granting stock options. The Corporate Governance Report submitted to the TSE does not include "restricted stock compensation" in the breakdown of compensation incentives, but recently this is becoming the mainstream instead of stock options (Metrical thinks this makes more sense).</p>

In this article, I would like to focus on compensation incentives. As the table below shows, among the 1,722 companies in the Metrical Universe as of August 2021, 1,543 companies, or nearly 90%, have introduced some type of compensation incentive. Among the compensation incentives, performance-linked compensation is the most common, with more than 60% of the companies in our universe adopting performance-linked compensation. Only 23.5% of companies have adopted stock option plans. It is important to note that even if a company has adopted a stock option plan, it does not necessarily mean that it is currently granting stock options. The Corporate Governance Report submitted to the TSE does not include "restricted stock compensation" in the breakdown of compensation incentives, but recently this is becoming the mainstream instead of stock options (Metrical thinks this makes more sense).

Japan's Governance: Compensation Incentives

TSE Tokyo Price Index TOPIX

Japan's Governance: Compensation Incentives