Bandai Namco Ties 70% of Executive Pay to Games’ Performance in New Compensation Overhaul

Bandai Namco Holdings is revising its executive compensation system to place greater emphasis on performance-based rewards, the company announced on May 8. Under the new structure, 70% of executive pay will be performance-linked—up from 60%—while fixed salaries will make up the remaining 30%.

Half of all executive compensation will now be stock-based, up from 40%, to better align leadership incentives with shareholder interests. Total base salaries will be capped at 650 million Japanese yen (approximately $4.14 million) annually, with a portion allocated to a shareholding plan.

Bonuses will depend on Bandai Namco’s success in meeting targets for profit, earnings per share and sustainability, with the maximum bonus pool set at $4.14 million or 1.5% of net income attributable to shareholders—whichever is lower. Executives may receive no bonus at all if goals are not met.

While performance expectations are rising for executives, Bandai Namco has taken a different approach with regular employees, integrating bonuses into base pay since 2022 to provide more income stability.

The change comes after Bandai Namco achieved its most profitable year ever (FY2024–2025), reporting a 99.5% increase in profits compared to the previous year. This surge was driven by strong performances from Dragon Ball: Sparking! Zero, which sold over 5 million copies within four months, and the Elden Ring: Shadow of the Erdtree expansion, which reached the same milestone in under a week.