Executive pay: Shiseido operates peer-based compensation scheme

Executive pay: Shiseido operates peer-based compensation scheme

Shiseido is taking the measure of its competitors’ performance to determine how much its executives are paid, according to a report published by Nikkei.

The Japanese cosmetics giant compares its results to those at L’Oréal, Estée Lauder et al to determine an upper limit for the stock options available for staff bonuses – if Shiseido performs better than its contemporaries, then the available pot grows.

“We have to compete with leading global players, including for recruits,” a company representative told Nikkei. “We wanted to make it clear to investors that we do not determine compensation just by internal measurements.”

Average pay per executive at Shiseido stands at ¥131 million, according to Nikkei.

 

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