Pentax 2012 Annual Report Download - page 35

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each Executive Officer (President, CEO, etc.) and by taking into consideration such
factors as the Company's business environment and the levels set by other
companies as determined by a survey conducted by an outside professional
organization.
Performance-based compensation is determined by both financial performance,
measured as the percentage of targets met with respect to indicators corresponding
to sales, profit for the year and earnings per share according to Japanese GAAP,
which is given an 80% weight, and the degree of achievement with respect to
management measures set at the beginning of the fiscal year, which is given a 20%
weight. Remuneration typically consists of 50% fixed salary and 50% performance-
based pay. The performance-based portion, however, can fluctuate widely,
depending on the Company's performance.
Benefits granted to expatriates (such as housing) are also set at appropriate levels
in consideration of the Company's business environment and the levels set by other
companies as determined by a survey conducted by an outside professional
organization.
(iv) Stock Options
In order for newly-appointed Directors and Executive Officers to share the same
perspective as shareholders in regards to share price, and for re-appointed to share
common interest with shareholders on long-term basis, commensurate stock
options, which are a certain percentage of the granted shares when newly-
appointed, are granted continuously every year in consideration of the exercise
price at the time of granting (a market price one day prior to a Board of Directors
resolution regarding stock option grants), fluctuations in the share price during the
exercise period and fixed annual salaries.
Based on the above, the number of stock options granted to Outside Directors is
fixed each year, whereas the number of stock options granted to Executive Officers
is based on Company performance and individuals' evaluations, subject to
deliberation by the Compensation Committee and decided by the Board of
Directors.
Retirement benefits for officers were eliminated in 2003 as it was determined that
these benefits were essentially a service pay for many years of service and had
little to do with Company's performance or shareholder returns, and as such are not
appropriate as a component of the officer compensation scheme.
Total amount of remuneration, etc. of Directors and Executive Officers for the fiscal
year ended March 2012.
Classification
Number
of
(payees)
Total amount
of
(remuneration,
etc.)
Total amount of remuneration by
type
Fixed
salary
Performance
based
remuneration
Stock
option
Directors
Outside 6
persons 59 millions 51
millions -8
millions
Internal 3
persons 24 millions 24
millions --
Total 9
persons 83 millions 75
millions -8
millions
Executive officers 4
persons 275 millions 184
millions 43 millions 48
millions
Total 10
persons 358 millions 258
millions 43 millions 56
millions