June 18, 2010
Summary
◆On 31 March 2010, the Financial Services Agency (FSA) announced amendments to its “Cabinet Office Ordinance on Disclosure of Corporate Affairs.” These included revised regulations regarding disclosure of executive compensation.
◆The FSA now requires listed firms to disclose the following: (1) a breakdown of total compensation by payment type for each executive earning Y100 million or more during the relevant fiscal year, (2) total remuneration for each category of executive (e.g., internal director, internal statutory auditor, executive officer, and external director), and (3) company-wide policies for determining executive compensation.
◆These revised regulations will apply to securities reports for the fiscal year ending on 31 March 2010 and beyond (i.e., from FY09 for companies which close their books in March).
*This report updates our 17 February 2010 report on the proposed revisions to the Cabinet Office Ordinance (Japanese only).
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