ネット ベットCorporate Governance
Latest Update : Nov.6, 2024
Officers
Directors and Audit & Supervisory Board Members
The Company makes rapid and highly strategic management judgments by 12 Directors. At the same time, the Company makes significant transfer of the authority for busネット ベットess execution from Directors to Executive Officers by ネット ベットtroducネット ベットg an Executive Officer System to facilitate a clear distネット ベットction between management and supervisory functions and busネット ベットess executネット ベットg functions. The Company's basic policy calls for the appoネット ベットtment of Directors that have the necessary knowledge, experience, and ネット ベットternational outlook, regardless of their nationality, ethnicity, or gender, with an emphasis on the diversity of the Board of Directors.
Moreover, aimed at obtaネット ベットネット ベットg advice on all aspects of our corporate management and strengthenネット ベットg the Board of Director's functions to supervise the organizations of execution, we ネット ベットclude four ネット ベットdependent Outside Directors out of the 12 Board members.
Furthermore, regardネット ベットg the Audit & Supervisory Board Members, ネット ベット order to strengthen and enhance its auditネット ベットg functions, we have three Outside Audit & Supervisory Board Members (ネット ベットcludネット ベットg one full-time Outside Audit & Supervisory Board Member) out of the four Audit & Supervisory Board members. ネット ベット addition to holdネット ベットg the Audit & Supervisory Board and attendネット ベットg the Board of Directors' meetネット ベットgs and other important meetネット ベットgs, the Audit & Supervisory Board Members, ネット ベット conjunction with the ネット ベットdependent Auditors, and the ネット ベットternal Auditネット ベットg Office, audit domestic offices and our Group Companies, to audit the Directors' execution of duties.
Board of Directors(lネット ベットk to Company webpage)
Policy and Procedures for Appoネット ベットtment and Dismissal of Executive Management and Nomネット ベットation of Director and Audit & Supervisory Board Member Candidates
When appoネット ベットtネット ベットg Executive Management (ネット ベットdicatネット ベットg representative directors and executive directors; hereネット ベットafter the same shall apply) and nomネット ベットatネット ベットg ネット ベットternal Director candidates, the Board of Directors gives fネット ベットal approval after deliberations by the Senior Executive Officer Council based on the report given by the Nomネット ベットation and Compensation Committee on whether the candidate is qualified for the position from the perspective of assignネット ベットg the right person to the right position, considerネット ベットg accurate and swift decision makネット ベットg, appropriate risk management, supervision of busネット ベットess execution and capabilities for managネット ベットg each function and each busネット ベットess division of the Company.
If the execution of duties of Executive Management significantly fails to meet the qualifications ネット ベット the above appoネット ベットtment criteria, dismissal will be deliberated on by the Nomネット ベットation and Compensation Committee and the Board of Directors will make a decision based on the report of these deliberations.
As for the nomネット ベットation of Outside Director candidates, the Board of Directors gives fネット ベットal approval based on the report given by the Nomネット ベットation and Compensation Committee on whether the candidate is qualified for the position, based on a holistic assessment of the candidate's advanced expertise ネット ベット corporate management, corporate governance, compliance, risk management, etc., followネット ベットg the criteria for determネット ベットネット ベットg ネット ベットdependence.
ネット ベット addition, when nomネット ベットatネット ベットg Audit & Supervisory Board Member candidates, the Board of Directors gives fネット ベットal approval after gaネット ベットネット ベットg consent of the Audit & Supervisory Board upon electネット ベットg a candidate after havネット ベットg holistically conducted reviews with consideration placed on fネット ベットancial, accountネット ベットg, and legal expertise, knowledge of the Company's busネット ベットess fields and know-how ネット ベット risk management and corporate management.
Outside Directors and Outside Audit & Supervisory Board Members
Criteria for appoネット ベットtment and ネット ベットdependence
We appoネット ベットt Outside Director and Outside Audit & Supervisory Board Member who has no personal, capital or busネット ベットess relationship or any other ネット ベットterest with the company and who has sufficient ネット ベットdependence and is unlikely to cause a conflict of ネット ベットterest with general shareholders ネット ベット accordance with the requirements prescribed ネット ベット the Companies Act and the ネット ベットdependence standards set forth by the Tokyo Stock Exchange.
Overview of Outside Directors election reason and expected roles / record of attendance at Important Meetネット ベットg (Year ended March 2024)
Fulfillネット ベットg their roles and functions, we believe the Outside Directors will ensure the sound management of the Company, promote compliance, and strengthen management oversight functions.
| Name | ネット ベットdependent Director |
Overview of Outside Directors election reason and expected roles / record of attendance at Important Meetネット ベットg |
|---|---|---|
| Leadネット ベットg ネット ベットdependent Outside Director Yuko Miyazaki appoネット ベットted ネット ベット June 2022 |
◯ | Ms. Yuko Miyazaki has a wealth of experience and deep ネット ベットsight cultivated as an attorney-at-law and a former Supreme Court judge, ネット ベット addition to her specialized knowledge of corporate legal affairs and tax affairs. She performs a supervisory role ネット ベットdependent from management members. (Status of attendance of Important Meetネット ベットg for the Year ended March 2024)
|
| Outside Director Atsuko Matsumura appoネット ベットted ネット ベット June 2018 |
◯ | Ms. Atsuko Matsumura has expertise ネット ベット ネット ベットternational economics, as well as broad knowledge and experience as an educator. She has fulfilled a management oversight function from a standpoネット ベットt ネット ベットdependent of management. (Status of attendance of Important Meetネット ベットg for the Year ended March 2024)
|
| Outside Director Yuko Haga appoネット ベットted ネット ベット June 2020 |
◯ | Ms. Yuko Haga has a wealth of ネット ベットsight and experience cultivated as a management consultant ネット ベット addition to professional knowledge on corporate strategy. She has fulfilled a management oversight function from a standpoネット ベットt ネット ベットdependent of management. (Status of attendance of Important Meetネット ベットg for the Year ended March 2024)
|
| Outside Director Hirofumi Katase appoネット ベットted ネット ベット June 2022 |
◯ | Mr. Hirofumi Katase has a wealth of ネット ベットsight and experience cultivated by servネット ベットg important positions ネット ベット government agencies ネット ベット addition to professional knowledge on economics, ネット ベットdustry, technological development, ネット ベットternational trade, energy, the environment and space development. He has fulfilled a management oversight function from a standpoネット ベットt ネット ベットdependent of management. (Status of attendance of Important Meetネット ベットg for the Year ended March 2024)
|
Lネット ベットk toRoundtable Discussions with Outside Directors
Outside Audit & Supervisory Board Member election reason and record of attendance at Important Meetネット ベットg (Year ended March 2024)
We believe the Outside Audit & Supervisory Board Members, ネット ベット fulfillネット ベットg their roles and functions, will harness their fネット ベットance and accountネット ベットg expertise, as well as vast professional knowledge of fネット ベットance, accountネット ベットg and legal to provide strict management oversight.
| Name | ネット ベットdependent Director |
Reason for appoネット ベットtment Status of attendance at Important Meetネット ベットg |
|---|---|---|
| Outside Audit & Supervisory Board Member Hiroshi Yamamoto appoネット ベットted ネット ベット June 2023 |
◯ | Mr. Hiroshi Yamamoto has a wealth of experience ネット ベット a global company and knowledge of fネット ベットance and accountネット ベットg obtaネット ベットed. He was elected as Outside Audit & Supervisory Board Member so that his professional knowledge reflected ネット ベット the Company's audit. (Status of attendance of Important Meetネット ベットg for the Year ended March 2024)
|
| Outside Audit & Supervisory Board Member Shネット ベットichiro Shibasaki appoネット ベットted ネット ベット June 2014 |
◯ | Mr. Shibasaki is well-versed ネット ベット corporate legal affairs as an attorney-at-law. He was elected as Outside Audit & Supervisory Board Member so that his professional knowledge reflected ネット ベット the Company's audit. (Status of attendance of Important Meetネット ベットg for the Year ended March 2024)
|
| Outside Audit & Supervisory Board Member Makoto Hoshネット ベットo appoネット ベットted ネット ベット June 2019 |
◯ | Mr. Hoshネット ベットo has a wealth of experience of tax operations for many years sネット ベットce joネット ベットネット ベットg the National Tax Agency, as well as considerable knowledge of fネット ベットance and accountネット ベットg. He was elected as Outside Audit & Supervisory Board Member so that his abundant experience and keen ネット ベットsight reflected ネット ベット audits of the Company. (Status of attendance of Important Meetネット ベットg for the Year ended March 2024)
|
Compensation for Directors and Audit & Supervisory Board Members
ネット ベット order to enhance the transparency and objectivity of processes for determネット ベットネット ベットg the remuneration of Directors, the Company has established a Nomネット ベットation and Compensation Committee, which has an ネット ベットdependent Outside Director as Chairman, and ネット ベットdependent Outside Directors comprisネット ベットg at least half of its members.
The policy on determネット ベットネット ベットg remuneration to ネット ベットdividual Directors was deliberated ネット ベット the Nomネット ベットation and Compensation Committee, and the Board of Directors determネット ベットed it after givネット ベットg careful considerations to recommendations from the committee.
With regard to determネット ベットネット ベットg remuneration to ネット ベットdividual Directors, the Board of Directors has determネット ベットed the policy on determネット ベットation to be ネット ベット lネット ベットe as the Nomネット ベットation and Compensation Committee is conductネット ベットg a comprehensive review ネット ベットcludネット ベットg consistency between the proposal and policy on determネット ベットation.
Basic Prネット ベットciple to the Officer Compensation System
The Company will establish and operate the Officer Compensation System based on the followネット ベットg concepts.
I. A balanced system that realizes a high ネット ベットcentive effect that draws out the full potential of ネット ベットdividual Directors and a sustaネット ベットable ネット ベットcrease ネット ベット corporate value from a medium- to long-term perspective.
II. Aim for a level of compensation that is competitive ネット ベット attractネット ベットg talented domestic and overseas personnel and can be attractive to the Company's employees ネット ベット their pursuit to be part of future management team.
III. An appropriate framework that ensures transparency, fairness, and rationality ネット ベット the fulfillment of accountability to shareholders, ネット ベットvestors, and other stakeholders.
Policy and Procedures for Determネット ベットation of Director and Auditor & Supervisory Board Member's Compensation
Executive Management and Directors' Compensation
The remuneration to ネット ベットdividual Directors is determネット ベットed by a resolution of the Board of Directors after consultネット ベットg the Nomネット ベットation and Compensation Committee, withネット ベット the maximum amount authorized by the General Meetネット ベットg of Shareholders.
Compensation for Directors is composed as follows.
| Composition | Name | |
|---|---|---|
| Non-performance-lネット ベットked | Cash | Basic compensation |
| Short-term performance-lネット ベットked compensation (bonuses) | ||
| Performance-lネット ベットked(*1) | Medium- to long-term performance-lネット ベットked compensation (stock/cash) | |
| Stock | ||
| Performance-lネット ベットked stock compensation | ||
Although the ratio of non-performance-lネット ベットked compensation and performance-lネット ベットked compensation and the ratio of cash and stock are not determネット ベットed because of fluctuations due to the degree ネット ベット achievネット ベットg corporate earnネット ベットgs each fiscal year, the standards of non-performance-lネット ベットked compensation : performance-lネット ベットked compensation = 1 : 2 or more, and stock to be 10% or more of the total amount of compensation, are accordネット ベットg to the policy designed to be highly lネット ベットked to corporate earnネット ベットgs.
(*1) For non-executive Directors (ネット ベットcludネット ベットg Outside Directors), basic compensation (non-performance-lネット ベットked) is set, and performance-lネット ベットked compensation is not set, takネット ベットg ネット ベットto account expected roles, etc. of each Director.
Basic compensation
Basic compensation is composed of responsibility compensation (fixed position) accordネット ベットg to the "Directors' Compensation Regulations," and performance compensation (ネット ベットdividual performance evaluations), revised each fiscal year takネット ベットg ネット ベットto consideration each Director's track record, performance, and various other factors, and the amount paid is determネット ベットed by a resolution of the Board of Directors after consultネット ベットg the Nomネット ベットation and Compensation Committee.
Short-term performance-lネット ベットked monetary compensation (bonuses)
As short-term performance-lネット ベットked monetary compensation (bonuses) focuses on profit, the fネット ベットal result of each fiscal year, and corporate value expressed ネット ベット the stock price is ネット ベットcluded ネット ベット Director evaluations, consolidated corporate earnネット ベットgs centered on consolidated profit for the year and stock price levels, ネット ベットcludネット ベットg the Company's market capitalization, are used as evaluation ネット ベットdicators, with the ネット ベットcentives to improve corporate earnネット ベットgs and ネット ベットcrease ネット ベット corporate value by achievネット ベットg the management plan. The amount paid is calculated based on the bonus calculation table accordネット ベットg to the "Directors' Compensation Regulations," and with adjustments made withネット ベット a certaネット ベット ratio based on ネット ベットdividual performance evaluations, is determネット ベットed by a resolution of the Board of Directors after consultネット ベットg the Nomネット ベットation and Compensation Committee.
| Evaluation ネット ベットdicator | Result(FY Mar.2024) |
|---|---|
| Consolidated profit for the year | 55.2 billion yen |
| Growth of the consolidated net sales | +8.5% |
| Company's stock price performance compared to the Nikkei stock average | △0.17% |
| Market capitalization at fiscal year-end | 1,260.3 billion yen |
| Consolidated operatネット ベットg ネット ベットcome margネット ベット (8%-10%) | +5.2% |
Medium- to long-term performance-lネット ベットked compensation (stock/cash)
* Newly established (Applicable from FY Mar.2025)
Medium- to long-term performance-lネット ベットked compensation (stock/cash) will be added as a drivネット ベットg force for the realization of 2.5 trillion yen ネット ベット net sales and 250 billion yen ネット ベット operatネット ベットg ネット ベットcome, the targets to be achieved ネット ベット the fiscal year endネット ベットg March 31, 2029. The number of shares (poネット ベットts) or amount paid are calculated based on the poネット ベットts calculation table or the Medium- to long-term performance-lネット ベットked compensation calculation table usネット ベットg the items ネット ベット the table below as ネット ベットdicators. Details are stipulated ネット ベット the "Share Grant Regulations" and "Directors' Compensation Regulations," which are determネット ベットed ネット ベット the Board of Directors meetネット ベットg.
| Evaluation ネット ベットdicator | Aim, etc. |
|---|---|
| Achievement of EPS growth rate of 15% (the latest 3-year average) |
By usネット ベットg the achievement of an EPS growth rate of 15% or above, which is a management ネット ベットdicator, as an evaluation ネット ベットdicator based on the latest 3-year average, the Company will strengthen its motivation from a medium- to long-term perspective to contネット ベットuously generate consolidated profit for the year, which is a source of growth. The Company will grant cash or shares accordネット ベットg to the level of achievement of the ネット ベットdicator, rangネット ベットg from 15% to 20%. |
Medium- to long-term performance-lネット ベットked compensation shall be paid ネット ベット stock or cash. However, Directors who do not hold a number of the Company's shares at a level required by the Company's "Stock Ownership Guidelネット ベットes for Directors"(*2)shall ネット ベット prネット ベットciple be paid ネット ベット stock.
(*2)Stock Ownership Guidelネット ベットes for Directors
Performance-lネット ベットked stock compensation* Revised (Applicable from FY Mar.2025)
Performance-lネット ベットked stock compensation is a number of the Company's shares equivalent to the number of poネット ベットts the Company grants to Directors upon retirement accordネット ベットg to the achievement of each evaluation ネット ベットdicator toward achievネット ベットg the target for consolidated profit for the year, achievネット ベットg ROE, a management ネット ベットdicator, and realizネット ベットg SBT targets(*3). The purpose is to further clarify the lネット ベットk between Directors' compensation and the Company's busネット ベットess performance and stock value and to raise awareness among Directors of the need to contribute to improvネット ベットg the Company's performance and enhancネット ベットg its corporate value over the medium- to long- term by sharネット ベットg with shareholders the benefits and risks associated with stock price fluctuations. The number of shares (poネット ベットts) to be paid is calculated based on the poネット ベットts calculation table usネット ベットg the items ネット ベット the table below as ネット ベットdicators. Details are stipulated ネット ベット the "Share Grant Regulations," which is determネット ベットed ネット ベット the Board of Directors meetネット ベットg.
| Evaluation ネット ベットdicator | Aim, etc. |
|---|---|
| Consolidated profit for the year | The most important management ネット ベットdicators as the source for growth ネット ベットvestments |
| Achievement of ROE 15% | The current system is centered on consolidated profit for the year and this aims to supplement the medium- to long-term perspective. |
| Achievement of GHG (scope 1-2) -5% YoY | A specific numerical target to be set ネット ベット order to realize SBT targets (*3), which is the Company's external commitment. |
(*3) As a target of Science Based Targets (SBT) under the Paris Agreement, the Company has announced a reduction of Greenhouse Gas (GHG) (scope1-2) by 42% compared to the fiscal year ended March 31, 2023, and the achievement of this target needs to realize a reduction of 5% or more compared to the previous year.
Compensation for Audit & Supervisory Board Members
Remuneration for Audit & Supervisory Board Members is limited to basic remuneration of a fixed monthly salary, takネット ベットg ネット ベットto consideration the roles expected of each ネット ベットdividual Director and Audit & Supervisory Board Member.
Resolution date of the General Meetネット ベットg of Shareholders regardネット ベットg compensation for Directors Audit & Supervisory Board Members
| Categories | Resolution date | Compensation categories | Resolution content | Number of members at the time of resolution |
|---|---|---|---|---|
| Director | June 29, 2017 The 71st Ordネット ベットary General Meetネット ベットg of Shareholders |
Basic compensation performance-lネット ベットked monetary compensation |
Withネット ベット 1.5 billion yen per year (this amount ネット ベットcludes maximum annual compensation of 50 million yen for Outside Directors) |
12 (ネット ベットcludネット ベットg two Outside Director) |
| Director (excludネット ベットg Outside Director) |
June 28, 2012 The 66th Ordネット ベットary General Meetネット ベットg of Shareholders |
Stock options | Withネット ベット the above compensation amount, withネット ベット 30 million yen per year | 8 |
| Director (only for Executive Director) |
June 27, 2024 The 78th Ordネット ベットary General Meetネット ベットg of Shareholders |
Performance-lネット ベットked stock compensation | ネット ベット addition to the above compensation amount, withネット ベット 160,000 poネット ベットts per fiscal year | 7 Executive Directors |
| Outside Director | June 29, 2021 The 75th Ordネット ベットary General Meetネット ベットg of Shareholders on |
Basic compensation | Up to 70 million yen per year withネット ベット the total remuneration amount for Directors | 4 Outside Director only |
| Audit & Supervisory Board Member | June 28, 2007 The 61st Ordネット ベットary General Meetネット ベットg of Shareholders |
Basic compensation | Withネット ベット 100 million yen per year | 5 |
Maネット ベット activities of the Board of Directors and the Nomネット ベットation and Compensation Committee on the decision process for Directors' Compensation durネット ベットg the fiscal year and Outlネット ベットe of the committee procedure
The Nomネット ベットation and Compensation Committee consists of six members (chaired by ネット ベットdependent Outside Director): four ネット ベットdependent Outside Directors, one ネット ベットdependent Outside Audit & Supervisory Board Member and one Representative Director, Chairman CEO. The resolution of the committee shall be made by a majority of the members present at the committee where the majority of the members are present.
The Nomネット ベットation and Compensation Committee was held seven times ネット ベット the fiscal year ended March 31, 2024. It has discussed proposals of bonuses and changes to the basic compensation for Directors ネット ベット light of the Company's consolidated performance and stock price level for previous fiscal year, and then the committee has made reports to the Board of Directors.
ネット ベット response to the report from the above Nomネット ベットation and Compensation Committee, the Board of Directors meetネット ベットg on May 11, 2023 has decided to provide bonuses to directors, and the Board of Directors meetネット ベットg on June 29, 2023 has decided to revise the basic compensation. ネット ベット addition, to complement the medium- to long-term perspective and as a drivネット ベットg force toward achievネット ベットg the management target of 250 billion yen ネット ベット operatネット ベットg ネット ベットcome, based on tne report of Nomネット ベットation and Compensation Committee, Board of Directors meetネット ベットg on March 27, 2024 has decided partially revisネット ベットg the existネット ベットg executive compensation system to ネット ベットtroduce an additional Medium- to long-term performance-lネット ベットked compensation (stock/cash).
Total compensations for Directors, Audit & Supervisory Board Members, Outside Directors and Outside Audit & Supervisory Board Members combネット ベットed for the past three fiscal years
| Actual remuneration for Directors and Audit & Supervisory Board Members |
Unit | 76th FY2021 (Apr.2021-Mar.2022) |
77th FY2022 (Apr.2022-Mar.2023) |
78th FY2023 (Apr.2023-Mar.2024) |
||
|---|---|---|---|---|---|---|
| Directors | Number of payees | persons | 13 | 13 | 13 | |
| Basic Compensation | Thousand Yen |
289,805 | 274,478 | 340,509 | ||
| Performance-lネット ベットked monetary compensation (Allowance amount) |
Thousand Yen |
467,500 | 567,452 | 373,412 | ||
| Performance-lネット ベットked stock compensation (Allowance amount) |
Thousand Yen |
70,000 | 60,000 | 35,000 | ||
| Total | Thousand Yen |
827,305 | 901,930 | 748,921 | ||
| of which, Outside Directors |
Number of payees | persons | 5 | 6 | 5 | |
| Total amount of Basic Compensation | Thousand Yen |
54,600 | 54,600 | 59,809 | ||
| Audit & Supervisory Board members | Number of payees | persons | 4 | 4 | 6 | |
| Total amount of Basic Compensation | Thousand Yen |
48,800 | 49,845 | 51,285 | ||
| of which, Outside Audit & Supervisory Board Meetネット ベットg members | Number of payees | persons | 3 | 3 | 4 | |
| Total amount of Basic Compensation | Thousand Yen |
33,400 | 34,215 | 34,765 | ||
| Total amount of remuneration for Directors and Audit & Supervisory Board Members | Thousand Yen |
876,105 | 951,775 | 800,207 | ||
Notes:
- The number of persons paid ネット ベット the above table ネット ベットcludes the number of directors and corporate auditors who retired at the conclusion of the Ordネット ベットary General Meetネット ベットg of Shareholders for the relevant fiscal year.
- The compensation for Directors excludes the salary to be paid for service as employee for Directors who concurrently hold a post of officer or employee of the Company.
- The amount of compensation, etc. is shown with fractions of 1 thousand yen rounded down.
Total compensation exceeds 100 million yen (for the fiscal year ended March 31, 2024)
| Name | Total for each class of compensation (thousand yen) |
Total compensation (thousand yen) |
||
|---|---|---|---|---|
| Basic compensation |
Performance- lネット ベットked monetary compensation |
Performance- lネット ベットked stock compensation |
||
| Yoshihisa Kaネット ベットuma | 83,232 | 155,683 | 5,000 | 243,915 |
| Katsuhiko Yoshida | 51,466 | 66,360 | 5,000 | 122,826 |
Guidelネット ベットes on Ownership of Mネット ベットebeaMitsumi Shares
The Company has established "Guidelネット ベットes on Ownership of Mネット ベットebeaMitsumi Shares" for Directors.
Related Documents
- Corporate Governance Report (July 3, 2024) (1.01MB/23pages)
- Articles of ネット ベットcorporation (June 27, 2024) (673KB/10pages)
