Taking into account that Corporate Executive Officers are key members of management responsible for executing the business operations of Sony, in order to further improve the business results of Sony Corporation, the following two elements constitute the basic policy for determining the remuneration of Corporate Executive Officers:
- attracting and retaining an adequate talent pool of Corporate Executive Officers who possess the requisite abilities to excel in the global marketplace; and
- providing effective incentives to improve business results on a short, medium and long-term basis, reflecting the appropriate balance of priorities among each time period.
Based upon the above, remuneration of Corporate Executive Officers is consists of the following four components:
- fixed remuneration;
- remuneration linked to business results;
- remuneration linked to share price; and
- a phantom restricted stock plan.*
The amount of each component and its percentage of total remuneration are determined in accordance with the above basic policy with an emphasis on linking remuneration to business results and shareholder value. Remuneration of Corporate Executive Officers is set at an appropriate level determined based on research by a third party regarding remuneration of senior management of both domestic and foreign companies, as well as his/her responsibilities. Specifically, the amount of remuneration linked to business results is determined based upon the consolidated business results of Sony Corporation, such as operating income, and the level of achievement in respect of the business area(s) for which the relevant Corporate Executive Officer is responsible, and the amount paid to Corporate Executive Officers fluctuates from 0 % to 200 %, in principle, of the base fixed remuneration amount.