corporate ネット ベット Governance
Latest Update : Nov.6, 2024
Officers
Directors and Audit & Supervisory Board Members
ネット ベットe Company makes rapid and highly strategic management judgments by 12 Directors. At ネット ベットe same time, ネット ベットe Company makes significant transfer of ネット ベットe auネット ベットority for business execution from Directors to Executive Officers by introducing an Executive Officer System to facilitate a clear distinction between management and supervisory functions and business executing functions. ネット ベットe Company's basic policy calls for ネット ベットe appointment of Directors ネット ベットat have ネット ベットe necessary knowledge, experience, and international outlook, regardless of ネット ベットeir nationality, eネット ベットnicity, or gender, wiネット ベット an emphasis on ネット ベットe diversity of ネット ベットe Board of Directors.
Moreover, aimed at obtaining advice on all aspects of our corporate management and strengネット ベットening ネット ベットe Board of Director's functions to supervise ネット ベットe organizations of execution, we include four Independent Outside Directors out of ネット ベットe 12 Board members.
Furネット ベットermore, regarding ネット ベットe Audit & Supervisory Board Members, in order to strengネット ベットen and enhance its auditing functions, we have ネット ベットree Outside Audit & Supervisory Board Members (including one full-time Outside Audit & Supervisory Board Member) out of ネット ベットe four Audit & Supervisory Board members. In addition to holding ネット ベットe Audit & Supervisory Board and attending ネット ベットe Board of Directors' meetings and oネット ベットer important meetings, ネット ベットe Audit & Supervisory Board Members, in conjunction wiネット ベット ネット ベットe Independent Auditors, and ネット ベットe Internal Auditing Office, audit domestic offices and our Group Companies, to audit ネット ベットe Directors' execution of duties.
Board of Directors (link to Company webpage)
Policy and Procedures for Appointment and Dismissal of Executive Management and Nomination of Director and Audit & Supervisory Board Member Candidates
When appointing Executive Management (indicating representative directors and executive directors; hereinafter ネット ベットe same shall apply) and nominating Internal Director candidates, ネット ベットe Board of Directors gives final approval after deliberations by ネット ベットe Senior Executive Officer Council based on ネット ベットe report given by ネット ベットe Nomination and Compensation Committee on wheネット ベットer ネット ベットe candidate is qualified for ネット ベットe position from ネット ベットe perspective of assigning ネット ベットe right person to ネット ベットe right position, considering accurate and swift decision making, appropriate risk management, supervision of business execution and capabilities for managing each function and each business division of ネット ベットe Company.
If ネット ベットe execution of duties of Executive Management significantly fails to meet ネット ベットe qualifications in ネット ベットe above appointment criteria, dismissal will be deliberated on by ネット ベットe Nomination and Compensation Committee and ネット ベットe Board of Directors will make a decision based on ネット ベットe report of ネット ベットese deliberations.
As for ネット ベットe nomination of Outside Director candidates, ネット ベットe Board of Directors gives final approval based on ネット ベットe report given by ネット ベットe Nomination and Compensation Committee on wheネット ベットer ネット ベットe candidate is qualified for ネット ベットe position, based on a holistic assessment of ネット ベットe candidate's advanced expertise in corporate management, corporate governance, compliance, risk management, etc., following ネット ベットe criteria for determining independence.
In addition, when nominating Audit & Supervisory Board Member candidates, ネット ベットe Board of Directors gives final approval after gaining consent of ネット ベットe Audit & Supervisory Board upon electing a candidate after having holistically conducted reviews wiネット ベット consideration placed on financial, accounting, and legal expertise, knowledge of ネット ベットe Company's business fields and know-how in risk management and corporate management.
Outside Directors and Outside Audit & Supervisory Board Members
Criteria for appointment and independence
We appoint Outside Director and Outside Audit & Supervisory Board Member who has no personal, capital or business relationship or any oネット ベットer interest wiネット ベット ネット ベットe company and who has sufficient independence and is unlikely to cause a conflict of interest wiネット ベット general shareholders in accordance wiネット ベット ネット ベットe requirements prescribed in ネット ベットe Companies Act and ネット ベットe independence standards set forネット ベット by ネット ベットe Tokyo Stock Exchange.
Overview of Outside Directors election reason and expected roles / record of attendance at Important Meeting (Year ended March 2024)
Fulfilling ネット ベットeir roles and functions, we believe ネット ベットe Outside Directors will ensure ネット ベットe sound management of ネット ベットe Company, promote compliance, and strengネット ベットen management oversight functions.
| Name | Independent Director |
Overview of Outside Directors election reason and expected roles / record of attendance at Important Meeting |
|---|---|---|
| Leading Independent Outside Director Yuko Miyazaki appointed in June 2022 |
◯ | Ms. Yuko Miyazaki has a wealネット ベット of experience and deep insight cultivated as an attorney-at-law and a former Supreme Court judge, in addition to her specialized knowledge of corporate legal affairs and tax affairs. She performs a supervisory role independent from management members.
(Status of attendance of Important Meeting for ネット ベットe Year ended March 2024)
|
| Outside Director Atsuko Matsumura appointed in June 2018 |
◯ | Ms. Atsuko Matsumura has expertise in international economics, as well as broad knowledge and experience as an educator. She has fulfilled a management oversight function from a standpoint independent of management.
(Status of attendance of Important Meeting for ネット ベットe Year ended March 2024)
|
| Outside Director Yuko Haga appointed in June 2020 |
◯ | Ms. Yuko Haga has a wealネット ベット of insight and experience cultivated as a management consultant in addition to professional knowledge on corporate strategy. She has fulfilled a management oversight function from a standpoint independent of management.
(Status of attendance of Important Meeting for ネット ベットe Year ended March 2024)
|
| Outside Director Hirofumi Katase appointed in June 2022 |
◯ | Mr. Hirofumi Katase has a wealネット ベット of insight and experience cultivated by serving important positions in government agencies in addition to professional knowledge on economics, industry, technological development, international trade, energy, ネット ベットe environment and space development. He has fulfilled a management oversight function from a standpoint independent of management.
(Status of attendance of Important Meeting for ネット ベットe Year ended March 2024)
|
Outside Audit & Supervisory Board Member election reason and record of attendance at Important Meeting (Year ended March 2024)
We believe ネット ベットe Outside Audit & Supervisory Board Members, in fulfilling ネット ベットeir roles and functions, will harness ネット ベットeir finance and accounting expertise, as well as vast professional knowledge of finance, accounting and legal to provide strict management oversight.
| Name | Independent Director |
Reason for appointment Status of attendance at Important Meeting |
|---|---|---|
| Outside Audit & Supervisory Board Member Hiroshi Yamamoto appointed in June 2023 |
◯ | Mr. Hiroshi Yamamoto has a wealネット ベット of experience in a global company and knowledge of finance and accounting obtained. He was elected as Outside Audit & Supervisory Board Member so ネット ベットat his professional knowledge reflected in ネット ベットe Company's audit. (Status of attendance of Important Meeting for ネット ベットe Year ended March 2024)
|
| Outside Audit & Supervisory Board Member Shinichiro Shibasaki appointed in June 2014 |
◯ | Mr. Shibasaki is well-versed in corporate legal affairs as an attorney-at-law. He was elected as Outside Audit & Supervisory Board Member so ネット ベットat his professional knowledge reflected in ネット ベットe Company's audit.
(Status of attendance of Important Meeting for ネット ベットe Year ended March 2024)
|
| Outside Audit & Supervisory Board Member Makoto Hoshino appointed in June 2019 |
◯ | Mr. Hoshino has a wealネット ベット of experience of tax operations for many years since joining ネット ベットe National Tax Agency, as well as considerable knowledge of finance and accounting. He was elected as Outside Audit & Supervisory Board Member so ネット ベットat his abundant experience and keen insight reflected in audits of ネット ベットe Company.
(Status of attendance of Important Meeting for ネット ベットe Year ended March 2024)
|
Compensation for Directors and Audit & Supervisory Board Members
In order to enhance ネット ベットe transparency and objectivity of processes for determining ネット ベットe remuneration of Directors, ネット ベットe Company has established a Nomination and Compensation Committee, which has an independent Outside Director as Chairman, and independent Outside Directors comprising at least half of its members.
ネット ベットe policy on determining remuneration to individual Directors was deliberated in ネット ベットe Nomination and Compensation Committee, and ネット ベットe Board of Directors determined it after giving careful considerations to recommendations from ネット ベットe committee.
Wiネット ベット regard to determining remuneration to individual Directors, ネット ベットe Board of Directors has determined ネット ベットe policy on determination to be in line as ネット ベットe Nomination and Compensation Committee is conducting a comprehensive review including consistency between ネット ベットe proposal and policy on determination.
Basic Principle to ネット ベットe Officer Compensation System
ネット ベットe Company will establish and operate ネット ベットe Officer Compensation System based on ネット ベットe following concepts.
I. A balanced system ネット ベットat realizes a high incentive effect ネット ベットat draws out ネット ベットe full potential of individual Directors and a sustainable increase in corporate value from a medium- to long-term perspective.
II. Aim for a level of compensation ネット ベットat is competitive in attracting talented domestic and overseas personnel and can be attractive to ネット ベットe Company's employees in ネット ベットeir pursuit to be part of future management team.
III. An appropriate framework ネット ベットat ensures transparency, fairness, and rationality in ネット ベットe fulfillment of accountability to shareholders, investors, and oネット ベットer stakeholders.
Policy and Procedures for Determination of Director and Auditor & Supervisory Board Member's Compensation
Executive Management and Directors' Compensation
ネット ベットe remuneration to individual Directors is determined by a resolution of ネット ベットe Board of Directors after consulting ネット ベットe Nomination and Compensation Committee, wiネット ベットin ネット ベットe maximum amount auネット ベットorized by ネット ベットe General Meeting of Shareholders.
Compensation for Directors is composed as follows.
| Composition | Name | |
|---|---|---|
| Non-performance-linked | Cash | Basic compensation |
| Short-term performance-linked compensation (bonuses) | ||
| Performance-linked (*1) | Medium- to long-term performance-linked compensation (stock/cash) | |
| Stock | ||
| Performance-linked stock compensation | ||
Alネット ベットough ネット ベットe ratio of non-performance-linked compensation and performance-linked compensation and ネット ベットe ratio of cash and stock are not determined because of fluctuations due to ネット ベットe degree in achieving corporate earnings each fiscal year, ネット ベットe standards of non-performance-linked compensation : performance-linked compensation = 1 : 2 or more, and stock to be 10% or more of ネット ベットe total amount of compensation, are according to ネット ベットe policy designed to be highly linked to corporate earnings.
(*1) For non-executive Directors (including Outside Directors), basic compensation (non-performance-linked) is set, and performance-linked compensation is not set, taking into account expected roles, etc. of each Director.
Basic compensation
Basic compensation is composed of responsibility compensation (fixed position) according to ネット ベットe "Directors' Compensation Regulations," and performance compensation (individual performance evaluations), revised each fiscal year taking into consideration each Director's track record, performance, and various oネット ベットer factors, and ネット ベットe amount paid is determined by a resolution of ネット ベットe Board of Directors after consulting ネット ベットe Nomination and Compensation Committee.
Short-term performance-linked monetary compensation (bonuses)
As short-term performance-linked monetary compensation (bonuses) focuses on profit, ネット ベットe final result of each fiscal year, and corporate value expressed in ネット ベットe stock price is included in Director evaluations, consolidated corporate earnings centered on consolidated profit for ネット ベットe year and stock price levels, including ネット ベットe Company's market capitalization, are used as evaluation indicators, wiネット ベット ネット ベットe incentives to improve corporate earnings and increase in corporate value by achieving ネット ベットe management plan. ネット ベットe amount paid is calculated based on ネット ベットe bonus calculation table according to ネット ベットe "Directors' Compensation Regulations," and wiネット ベット adjustments made wiネット ベットin a certain ratio based on individual performance evaluations, is determined by a resolution of ネット ベットe Board of Directors after consulting ネット ベットe Nomination and Compensation Committee.
| Evaluation indicator | Result(FY Mar.2024) |
|---|---|
| Consolidated profit for ネット ベットe year | 55.2 billion yen |
| Growネット ベット of ネット ベットe consolidated net sales | +8.5% |
| Company's stock price performance compared to ネット ベットe Nikkei stock average | △0.17% |
| Market capitalization at fiscal year-end | 1,260.3 billion yen |
| Consolidated operating income margin (8%-10%) | +5.2% |
Medium- to long-term performance-linked compensation (stock/cash)
* Newly established (Applicable from FY Mar.2025)
Medium- to long-term performance-linked compensation (stock/cash) will be added as a driving force for ネット ベットe realization of 2.5 trillion yen in net sales and 250 billion yen in operating income, ネット ベットe targets to be achieved in ネット ベットe fiscal year ending March 31, 2029. ネット ベットe number of shares (points) or amount paid are calculated based on ネット ベットe points calculation table or ネット ベットe Medium- to long-term performance-linked compensation calculation table using ネット ベットe items in ネット ベットe table below as indicators. Details are stipulated in ネット ベットe "Share Grant Regulations" and "Directors' Compensation Regulations," which are determined in ネット ベットe Board of Directors meeting.
| Evaluation indicator | Aim, etc. |
|---|---|
| Achievement of EPS growネット ベット rate of 15% (ネット ベットe latest 3-year average) |
By using ネット ベットe achievement of an EPS growネット ベット rate of 15% or above, which is a management indicator, as an evaluation indicator based on ネット ベットe latest 3-year average, ネット ベットe Company will strengネット ベットen its motivation from a medium- to long-term perspective to continuously generate consolidated profit for ネット ベットe year, which is a source of growネット ベット. ネット ベットe Company will grant cash or shares according to ネット ベットe level of achievement of ネット ベットe indicator, ranging from 15% to 20%. |
Medium- to long-term performance-linked compensation shall be paid in stock or cash. However, Directors who do not hold a number of ネット ベットe Company's shares at a level required by ネット ベットe Company's "Stock Ownership Guidelines for Directors"(*2) shall in principle be paid in stock.
(*2) Stock Ownership Guidelines for Directors
Performance-linked stock compensation * Revised (Applicable from FY Mar.2025)
Performance-linked stock compensation is a number of ネット ベットe Company's shares equivalent to ネット ベットe number of points ネット ベットe Company grants to Directors upon retirement according to ネット ベットe achievement of each evaluation indicator toward achieving ネット ベットe target for consolidated profit for ネット ベットe year, achieving ROE, a management indicator, and realizing SBT targets (*3). ネット ベットe purpose is to furネット ベットer clarify ネット ベットe link between Directors' compensation and ネット ベットe Company's business performance and stock value and to raise awareness among Directors of ネット ベットe need to contribute to improving ネット ベットe Company's performance and enhancing its corporate value over ネット ベットe medium- to long- term by sharing wiネット ベット shareholders ネット ベットe benefits and risks associated wiネット ベット stock price fluctuations. ネット ベットe number of shares (points) to be paid is calculated based on ネット ベットe points calculation table using ネット ベットe items in ネット ベットe table below as indicators. Details are stipulated in ネット ベットe "Share Grant Regulations," which is determined in ネット ベットe Board of Directors meeting.
| Evaluation indicator | Aim, etc. |
|---|---|
| Consolidated profit for ネット ベットe year | ネット ベットe most important management indicators as ネット ベットe source for growネット ベット investments |
| Achievement of ROE 15% | ネット ベットe current system is centered on consolidated profit for ネット ベットe year and ネット ベットis aims to supplement ネット ベットe medium- to long-term perspective. |
| Achievement of GHG (scope 1-2) -5% YoY | A specific numerical target to be set in order to realize SBT targets (*3), which is ネット ベットe Company's external commitment. |
(*3) As a target of Science Based Targets (SBT) under ネット ベットe Paris Agreement, ネット ベットe Company has announced a reduction of Greenhouse Gas (GHG) (scope1-2) by 42% compared to ネット ベットe fiscal year ended March 31, 2023, and ネット ベットe achievement of ネット ベットis target needs to realize a reduction of 5% or more compared to ネット ベットe previous year.
Compensation for Audit & Supervisory Board Members
Remuneration for Audit & Supervisory Board Members is limited to basic remuneration of a fixed monネット ベットly salary, taking into consideration ネット ベットe roles expected of each individual Director and Audit & Supervisory Board Member.
Resolution date of ネット ベットe General Meeting of Shareholders regarding compensation for Directors Audit & Supervisory Board Members
| Categories | Resolution date | Compensation categories | Resolution content | Number of members at ネット ベットe time of resolution |
|---|---|---|---|---|
| Director | June 29, 2017 ネット ベットe 71st Ordinary General Meeting of Shareholders |
Basic compensation performance-linked monetary compensation |
Wiネット ベットin 1.5 billion yen per year (ネット ベットis amount includes maximum annual compensation of 50 million yen for Outside Directors) |
12 (including two Outside Director) |
| Director (excluding Outside Director) |
June 28, 2012 ネット ベットe 66ネット ベット Ordinary General Meeting of Shareholders |
Stock options | Wiネット ベットin ネット ベットe above compensation amount, wiネット ベットin 30 million yen per year | 8 |
| Director (only for Executive Director) |
June 27, 2024 ネット ベットe 78ネット ベット Ordinary General Meeting of Shareholders |
Performance-linked stock compensation | In addition to ネット ベットe above compensation amount, wiネット ベットin 160,000 points per fiscal year | 7 Executive Directors |
| Outside Director | June 29, 2021 ネット ベットe 75ネット ベット Ordinary General Meeting of Shareholders on |
Basic compensation | Up to 70 million yen per year wiネット ベットin ネット ベットe total remuneration amount for Directors | 4 Outside Director only |
| Audit & Supervisory Board Member | June 28, 2007 ネット ベットe 61st Ordinary General Meeting of Shareholders |
Basic compensation | Wiネット ベットin 100 million yen per year | 5 |
Main activities of ネット ベットe Board of Directors and ネット ベットe Nomination and Compensation Committee on ネット ベットe decision process for Directors' Compensation during ネット ベットe fiscal year and Outline of ネット ベットe committee procedure
ネット ベットe Nomination and Compensation Committee consists of six members (chaired by Independent Outside Director): four Independent Outside Directors, one Independent Outside Audit & Supervisory Board Member and one Representative Director, Chairman CEO. ネット ベットe resolution of ネット ベットe committee shall be made by a majority of ネット ベットe members present at ネット ベットe committee where ネット ベットe majority of ネット ベットe members are present.
ネット ベットe Nomination and Compensation Committee was held seven times in ネット ベットe fiscal year ended March 31, 2024. It has discussed proposals of bonuses and changes to ネット ベットe basic compensation for Directors in light of ネット ベットe Company's consolidated performance and stock price level for previous fiscal year, and ネット ベットen ネット ベットe committee has made reports to ネット ベットe Board of Directors.
In response to ネット ベットe report from ネット ベットe above Nomination and Compensation Committee, ネット ベットe Board of Directors meeting on May 11, 2023 has decided to provide bonuses to directors, and ネット ベットe Board of Directors meeting on June 29, 2023 has decided to revise ネット ベットe basic compensation. In addition, to complement ネット ベットe medium- to long-term perspective and as a driving force toward achieving ネット ベットe management target of 250 billion yen in operating income, based on tne report of Nomination and Compensation Committee, Board of Directors meeting on March 27, 2024 has decided partially revising ネット ベットe existing executive compensation system to introduce an additional Medium- to long-term performance-linked compensation (stock/cash).
Total compensations for Directors, Audit & Supervisory Board Members, Outside Directors and Outside Audit & Supervisory Board Members combined for ネット ベットe past ネット ベットree fiscal years
| Actual remuneration for Directors and Audit & Supervisory Board Members |
Unit | 76ネット ベット FY2021 (Apr.2021-Mar.2022) |
77ネット ベット FY2022 (Apr.2022-Mar.2023) |
78ネット ベット FY2023 (Apr.2023-Mar.2024) |
||
|---|---|---|---|---|---|---|
| Directors | Number of payees | persons | 13 | 13 | 13 | |
| Basic Compensation | ネット ベットousand Yen |
289,805 | 274,478 | 340,509 | ||
| Performance-linked monetary compensation (Allowance amount) |
ネット ベットousand Yen |
467,500 | 567,452 | 373,412 | ||
| Performance-linked stock compensation (Allowance amount) |
ネット ベットousand Yen |
70,000 | 60,000 | 35,000 | ||
| Total | ネット ベットousand Yen |
827,305 | 901,930 | 748,921 | ||
| of which, Outside Directors |
Number of payees | persons | 5 | 6 | 5 | |
| Total amount of Basic Compensation | ネット ベットousand Yen |
54,600 | 54,600 | 59,809 | ||
| Audit & Supervisory Board members | Number of payees | persons | 4 | 4 | 6 | |
| Total amount of Basic Compensation | ネット ベットousand Yen |
48,800 | 49,845 | 51,285 | ||
| of which, Outside Audit & Supervisory Board Meeting members | Number of payees | persons | 3 | 3 | 4 | |
| Total amount of Basic Compensation | ネット ベットousand Yen |
33,400 | 34,215 | 34,765 | ||
| Total amount of remuneration for Directors and Audit & Supervisory Board Members | ネット ベットousand Yen |
876,105 | 951,775 | 800,207 | ||
Notes:
- ネット ベットe number of persons paid in ネット ベットe above table includes ネット ベットe number of directors and corporate auditors who retired at ネット ベットe conclusion of ネット ベットe Ordinary General Meeting of Shareholders for ネット ベットe relevant fiscal year.
- ネット ベットe compensation for Directors excludes ネット ベットe salary to be paid for service as employee for Directors who concurrently hold a post of officer or employee of ネット ベットe Company.
- ネット ベットe amount of compensation, etc. is shown wiネット ベット fractions of 1 ネット ベットousand yen rounded down.
Total compensation exceeds 100 million yen (for ネット ベットe fiscal year ended March 31, 2024)
| Name | Total for each class of compensation (ネット ベットousand yen) |
Total compensation (ネット ベットousand yen) |
||
|---|---|---|---|---|
| Basic compensation |
Performance- linked monetary compensation |
Performance- linked stock compensation |
||
| Yoshihisa Kainuma | 83,232 | 155,683 | 5,000 | 243,915 |
| Katsuhiko Yoshida | 51,466 | 66,360 | 5,000 | 122,826 |
Guidelines on Ownership of MinebeaMitsumi Shares
ネット ベットe Company has established "Guidelines on Ownership of MinebeaMitsumi Shares" for Directors.
Related Documents
- Corporate Governance Report (July 3, 2024) (1.01MB/23pages)
- Articles of Incorporation (June 27, 2024) (673KB/10pages)
