Abstract
The purpose of this paper is to understand the current situation and sort out the issues
related to the linkage between sustainability indicators and executive remuneration
systems in Japanese companies. This research will focus on Japanese companies
with excellent sustainability performance and capture trends in the link between
sustainability indicators and executive remuneration systems, which is said to be highly
difficult. As a result, the high-quality Japanese companies for sustainability tend to link
sustainability indicators to executive compensation at a higher rate than the major listed
companies representing Japan, mainly those in the Nikkei 225 was confirmed.
Additionally, through a case study, I confirmed the existence of external and internal
factors in linking sustainability indicators and executive remuneration.
