text: In the area of compensation, Nissan has moved even 
  
  further away from the traditional Japanese salary system. 
  
  Our annual base salary is commensurate with the industry 
  
  standard, but we have successfully introduced both a 
  
  performance-oriented pay system and a “commitment and 
  
  stretched-target” system. Superior performance is 
  
  rewarded, with even higher compensation—including stock 
  
  options for executives—for those who meet their 
  
  commitments and stretched targets. In 2004, nearly five 
  
  hundred employees exercised stock options, and we are 
  
  increasing the number of people eligible to receive them. 
  
  This has effectively brought Nissan’s pay scale to the top in 
  
  the industry, which has in turn inspired a high-performance 
  
  corporate culture. 
  
  HR will assume an even more prominent role as we 
  
  work to instill the urge for continuous excellence at Nissan. 
  
  To strengthen the upper ranks of the organization, for 
  
  example, we have established the Nissan Management 