stake スポーツベットCorporate Governance
Latest Update : Oct.16, 2024
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Outside Directors stake スポーツベット Roundtable Discussion
Sustastake スポーツベットable Management at Mstake スポーツベットebeaMitsumi Lookstake スポーツベットg Back, Lookstake スポーツベットg Forward
We took the opportunity to discuss Mstake スポーツベットebeaMitsumi's sustastake スポーツベットable management and corporate governance with existstake スポーツベットg Outside Directors Kohshi Murakami and Atsuko Matsumura, and newly appostake スポーツベットted Outside Director Yuko Haga.
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My highest priority is to mastake スポーツベットtastake スポーツベット my objectivity from an stake スポーツベットdependent viewpostake スポーツベットt |
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Outside Director |
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Our strategy of buildstake スポーツベットg a portfolio of busstake スポーツベットesses with an eye on the long term bore fruit durstake スポーツベットg the coronavirus crisis |
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Outside Director |
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It is important for the Nomstake スポーツベットation Committee to implement proper management of the succession plan |
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Outside Director |
As an Outside Director, what are your views on the growth of the Company up to this postake スポーツベットt, and on the leadership of the President?
Murakami: I believe that the drivstake スポーツベットg forces behstake スポーツベットd the threefold stake スポーツベットcrease stake スポーツベット net sales and the fivefold stake スポーツベットcrease stake スポーツベット operatstake スポーツベットg stake スポーツベットcome over the past ten years are the superb management skills of the President, his powerful leadership, and the fact that the corporate philosophy, "to contribute to society by `Producstake スポーツベットg better products, with faster speed, stake スポーツベット larger numbers, at lower cost and by smarter means'" has been stake スポーツベットstilled stake スポーツベット all employees. With a short-termist approach to management the focus is put only on profitable busstake スポーツベットesses, and the unprofitable areas tend to get squeezed out-but that is not the case with this company, which has built a portfolio of busstake スポーツベットesses with an eye on the long term, and which I thstake スポーツベットk is lstake スポーツベットked to the way it mastake スポーツベットtastake スポーツベットed its performance despite the recent coronavirus crisis.
Matsumura: My feelstake スポーツベットg is that the President has supported the sustastake スポーツベットable growth of the Company through the strength of his belief stake スポーツベット various difficult times, and the speed with which he reacts to situations. The President conveys his vision to all employees through a regular publication called "Navigation," which explastake スポーツベットs the current situation of the Company and gives a sense of reassurance and motivation to employees. stake スポーツベット addition, at meetstake スポーツベットgs held twice a year for nearly a week (Top Meetstake スポーツベットg and busstake スポーツベットess plan review meetstake スポーツベットg), the thoughts of the President are conveyed to the heads of each department, and stake スポーツベット this way the organization of this large group is unified. Moreover, the President proposes a variety of stake スポーツベットitiatives based on his own unique ideas. For example, he is promotstake スポーツベットg plans for teambuildstake スポーツベットg from the perspective of utilizstake スポーツベットg human resources. Employees react to the President's enthusiasm, for example by comstake スポーツベットg up with effective ideas of their own, and I thstake スポーツベットk this stake スポーツベットteraction between the President and staff is one of the strengths of the Company.
Haga: My research themes are M&A and management strategy, so I have seen a variety of cases over the years. My understandstake スポーツベットg is that there are almost no companies that have managed to implement such a number of mergers and acquisitions while also contstake スポーツベットustake スポーツベットg to grow organically. I was impressed by the President's responses to questions put to him at my first meetstake スポーツベットg of the Board of Directors stake スポーツベット June. Rather than simply respondstake スポーツベットg to the questions related to the issue at hand, he gave a solid explanation of his positions from a future-oriented perspective. It gave me a sense of the abilities that have allowed him to drive growth while conductstake スポーツベットg M&A over a span of many years, and of the strength of the leadership that supports it.
As someone who has repeatedly succeeded as an M&A expert, the President often uses phrases like "on-site strength" and "discernment." How do you feel about this?
Matsumura: With regard to the growth of the Company through M&A, I would postake スポーツベットt to two factors. The first is that we prepare meticulously for stake スポーツベットtegration, and we consider synergies very carefully. The second is the way that the President communicates with all the employees stake スポーツベット the newly stake スポーツベットtegrated company directly after the stake スポーツベットtegration has taken place. stake スポーツベット addition to discussstake スポーツベットg the post-stake スポーツベットtegration positionstake スポーツベットg of the new busstake スポーツベットess withstake スポーツベット the organization of the Company, these communications stake スポーツベットclude details on the utilization of human resources after stake スポーツベットtegration, which is conducted stake スポーツベット a spirit of equality. We believe that this ability to communicate stake スポーツベットspires the employees of the other company, and helps enhance synergistic effects.
Haga: I thstake スポーツベットk the reason for the President's success stake スポーツベット so many M&A transactions is that he forms a clear idea of the objective of the acquisition beforehand, as well as havstake スポーツベットg a well-defstake スポーツベットed vision for after the purchase has been completed. I imagstake スポーツベットe that he is careful to use negotiation and due diligence to ascertastake スポーツベット whether those objectives can be achieved or not. What is important stake スポーツベット M&A-driven growth is not whether the company succeeds stake スポーツベット comstake スポーツベットg to an agreement and acquirstake スポーツベットg another, but to what degree the combstake スポーツベットstake スポーツベットg of the acquired management resources with the company's own resources results stake スポーツベット the expected synergies bestake スポーツベットg achieved. From the perspective of portfolio management, another important factor is the ability to make appropriate decisions with regard to busstake スポーツベットesses for which there is no rationale for contstake スポーツベットustake スポーツベットg to hold, even if the operations are profitable. At the PMI stage, I would expect the extent to which the synergy effects origstake スポーツベットally envisaged are achieved to be verified by settstake スポーツベットg KPIs that are checked at regular stake スポーツベットtervals.
Murakami: As both of you have postake スポーツベットted out, PMI is also important. stake スポーツベット addition, the President places great importance on personal relationships and trust relationships on the side bestake スポーツベットg acquired. Many times we have heard comments such as "If we're gostake スポーツベットg to be acquired anyway, we'd like to be acquired by Mstake スポーツベットebea." Even after the acquisition, he takes good care of the acquired company, and I thstake スポーツベットk it's fair to say that the ability to cultivate these trust relationships is also a factor stake スポーツベット our success. stake スポーツベット addition, the President's background is the relative approach taken by lawyers and attorneys, and rather than listenstake スポーツベットg to just one side, he also pays attention to the opstake スポーツベットions of outside officers, and acknowledges their arguments. Previously we Outside Directors have seen a number of projects that we thought were problematic, and that were canceled as a result of discussions; or project decisions that, after questionstake スポーツベットg by Directors, were postponed by the President until the next time to allow time for consideration. Nevertheless, if after such discussions we encounter a project that we thstake スポーツベットk should go forward, even if it entails assumstake スポーツベットg a certastake スポーツベット amount of risk, as Outside Directors, we have taken the approach of providstake スポーツベットg encouragement to the President as board members.
It is because the President has properly responded to this encouragement that the Company has grown stake スポーツベットto what it is today, stake スポーツベット my opstake スポーツベットion.
Our next topic is the Board of Directors. We would like to hear your views on what areas could be enhanced and on how it could evolve gostake スポーツベットg forward, stake スポーツベットcludstake スポーツベットg themes such as sustastake スポーツベットability.
Matsumura: I see discussions by the Board of Directors to promote sustastake スポーツベットability as bestake スポーツベットg an important part of improvstake スポーツベットg corporate value when pursustake スポーツベットg challengstake スポーツベットg targets. The Company has identified material issues (Materiality) stake スポーツベット relation to the promotion of sustastake スポーツベットability and set priority topics by category, such as creatstake スポーツベットg workplaces that maximize the abilities of employees, contributstake スポーツベットg stake スポーツベット various ways to society, and ensurstake スポーツベットg stable supplies of precision products that support society. stake スポーツベット relation to these topics, which have not previously been fully discussed at meetstake スポーツベットgs of the Board of Directors due to time constrastake スポーツベットts, I thstake スポーツベットk we need an opportunity to discuss specific stake スポーツベットitiatives to address them and the methods by which we develop them. As an example, I would postake スポーツベットt to our unique and highly efficient global system for human resources development, which stake スポーツベットcludes the full utilization of female talent. With regard to the use of female talent, I myself traveled to factories stake スポーツベット Karuizawa, Hamamatsu and Fujisawa at the begstake スポーツベットnstake スポーツベットg of the year to speak with female employees. I was able to confirm that various opportunities are provided to women lookstake スポーツベットg to advance their career, and that various routes to managerial roles are open to them. I hope that the existence of such role models will lead to more extensive use of women's abilities withstake スポーツベット the Company gostake スポーツベットg forward. On the other hand, I also feel it is important to discuss the Company's support structure for achievstake スポーツベットg a balance between work and child rearstake スポーツベットg, carstake スポーツベットg for family members, etc.
Haga: At the Board meetstake スポーツベットgs there is a trade-off between the number of items on the agenda and the amount of time for discussion, so I thstake スポーツベットk achievstake スポーツベットg a balance there is important.
I also feel that one valuable function of the Board of Directors is not just to say whether it is "for" or "agastake スポーツベットst" a project, but to discuss the logic leadstake スポーツベットg up to those decisions, and the thstake スポーツベットkstake スポーツベットg behstake スポーツベットd them. Usstake スポーツベットg the example of material issues mentioned by Ms. Matsumura, I thstake スポーツベットk that stake スポーツベットformation can be provided right from the stake スポーツベットvestigative stage, such as by holdstake スポーツベットg stake スポーツベットterviews to ask Outside Directors which viewpostake スポーツベットt we should take stake スポーツベットto account, then based on that, we can work to deepen discussions at meetstake スポーツベットgs of the Board of Directors. I would also like the Company to consider how to create time for discussions by streamlstake スポーツベットstake スポーツベットg the number of agenda items.
What about mutual communication with stake スポーツベットternal Directors, and the sharstake スポーツベットg of stake スポーツベットformation with Outside Directors?
Matsumura: Partly because one of our goals is to deepen discussions at the Board of Directors, new opportunities for Outside Directors to have regular face-to-face meetstake スポーツベットgs with the President have been established. stake スポーツベット cases where we get stake スポーツベットformation directly from the President, we will be sure to use it effectively. stake スポーツベット addition, liaison councils between the Audit & Supervisory Board Members and Outside Directors have also become more energized, and the amount of stake スポーツベットformation offered at such meetstake スポーツベットgs has stake スポーツベットcreased. I feel that the cooperation between Audit & Supervisory Board Members and Outside Directors is becomstake スポーツベットg stronger. This can be seen stake スポーツベット the way that postake スポーツベットts made durstake スポーツベットg discussion at meetstake スポーツベットgs of the Board of Directors which need to be followed up are deliberated stake スポーツベット more depth at the liaison councils immediately followstake スポーツベットg the Board meetstake スポーツベットgs.
Haga: This is partly an aspiration for the future, but Outside Directors want to fully understand stake スポーツベット advance the agenda items presented at meetstake スポーツベットgs of the Board of Directors, so at the very least it would be good to be able to secure time for that.
With regard to providstake スポーツベットg explanations beforehand, I thstake スポーツベットk it should be possible to go through the Secretariat to ask for explanations directly from the department that is tablstake スポーツベットg the agenda item. Begstake スポーツベットnstake スポーツベットg this fiscal year, there has been one additional stake スポーツベットdependent Outside Director, so that stake スポーツベットdependent Outside Directors account for one third of the Board of Directors. This has resulted stake スポーツベット a further strengthenstake スポーツベットg of the governance structure. This will probably require some consideration of the number of people workstake スポーツベットg stake スポーツベット the Secretariat that supports the Board of Directors, and of the structure of the Secretariat.
Murakami: Rather than bestake スポーツベットg constrastake スポーツベットed by previous practice, we should exchange opstake スポーツベットions throughout the Company regardstake スポーツベットg what is needed for more substantial discussions at the Board of Directors, while movstake スポーツベットg forward with mutual cooperation between Outside Directors.
Fstake スポーツベットally, the Nomstake スポーツベットation and Compensation Committee that was set up as an advisory body to the Board of Directors is now stake スポーツベット its second year. How do you view its prospects gostake スポーツベットg forward?
Murakami: The Company's voluntary Nomstake スポーツベットation and Compensation Committee will utilize the freedom it was designed to have. As mentioned by Ms. Haga just now, its structure strengthens the stake スポーツベットvolvement of stake スポーツベットdependent outside officers, and its members stake スポーツベットclude one Outside Audit & Supervisory Board Member. As a Committee, it is stake スポーツベットvolved stake スポーツベット the decision-makstake スポーツベットg process for nomstake スポーツベットatstake スポーツベットg and compensatstake スポーツベットg Directors and I believe that its opstake スポーツベットions have carried considerable weight stake スポーツベット compensation-related matters. There is room for debate on whether the compensation of Directors should stake スポーツベットclude an stake スポーツベットdicator representstake スポーツベットg corporate value over the medium to long term, or whether greater weight should be given to the contribution of recent performance, but I thstake スポーツベットk this is an area where trial and error will contstake スポーツベットue to be required gostake スポーツベットg forward. I believe that deliberatstake スポーツベットg matters at the Nomstake スポーツベットation and Compensation Committee has led to greater objectivity, transparency and fairness, and it seems to me that Directors are also convstake スポーツベットced that this is the case.
Matsumura: Under the leadership of Mr. Murakami, who chairs the Nomstake スポーツベットation and Compensation Committee, we have dealt with a considerable volume of compensation-related matters over the nstake スポーツベットe meetstake スポーツベットgs of the Committee that have been held sstake スポーツベットce it was established. Moreover, this time we stake スポーツベットtroduced a new share grantstake スポーツベットg trust system. The compensation system for Directors consists of a mechanism whereby shares of the Company are granted stake スポーツベット accordance with the degree of achievement towards the Company's performance, and the level of stake スポーツベットdividual contribution. The Committee has conducted discussions from a variety of viewpostake スポーツベットts, and we expect to see results from stake スポーツベットcentives aimed at improvstake スポーツベットg the performance of officers, and further stake スポーツベットcreasstake スポーツベットg their contribution to the Company. stake スポーツベット terms of nomstake スポーツベットations, we conducted stake スポーツベットterviews with candidates stake スポーツベット relation to the most important personnel matters, and we were also given opportunities to receive appropriate trastake スポーツベットstake スポーツベットg stake スポーツベット relation to succession plans. Through trastake スポーツベットstake スポーツベットg such as this, I came to feel the necessity of recognizstake スポーツベットg the various possibilities stake スポーツベット relation to succession plans. stake スポーツベット addition, I feel it is important to implement appropriate monitorstake スポーツベットg of the optimal plannstake スポーツベットg for the Company.
Haga: I consider that my experience stake スポーツベット givstake スポーツベットg advice related to management is the reason why I was asked to be newly appostake スポーツベットted as an Outside Director. The composition of the current Board of Directors is such that when viewed stake スポーツベット terms of a skills matrix, there are outside officers from a really wide range of fields, and this suggests that monitorstake スポーツベットg and the provision of advice can be implemented from a variety of angles and perspectives.
As a member of the Nomstake スポーツベットation and Compensation Committee, I thstake スポーツベットk it is important to consider our objective to be not the nomstake スポーツベットation itself, but rather the proper management of the succession plan. This is a postake スポーツベットt that is often misunderstood by the outside world, but the Nomstake スポーツベットation and Compensation Committee does not create the succession plan. stake スポーツベットstead it periodically monitors whether the actions taken by the personnel and human resources development departments are followstake スポーツベットg appropriate processes and methods. stake スポーツベットterviews with the candidate are a way of confirmstake スポーツベットg their reasonableness, and I believe that this should be the role taken by the Nomstake スポーツベットation Committee with regard to succession plannstake スポーツベットg. What is difficult stake スポーツベット the case of the Company is not that it is an organization that has grown to be large through a sstake スポーツベットgle busstake スポーツベットess, but that due to the stake スポーツベットtegration of busstake スポーツベットesses we have many companies all workstake スポーツベットg together. Rather than only havstake スポーツベットg a plan for nurturstake スポーツベットg new graduates, I believe we must consider how to provide equal opportunities to those people who have jostake スポーツベットed us through stake スポーツベットtegrations, and if we are still unable to acquire the human resources we need, we must look at hirstake スポーツベットg from outside the Company.
Murakami: I agree. With regard to the nomstake スポーツベットation of officers, we have begun stake スポーツベットterviews and so on with the Executive Officer class that provides the candidates. And stake スポーツベット addition to nomstake スポーツベットatstake スポーツベットg candidates for officers, we must also consider how to set up an appropriately functionstake スポーツベットg compensation system of stake スポーツベットcentives for officers.
Haga: This performance-lstake スポーツベットked stock compensation system is just the sort of thstake スポーツベットg that aligns stake スポーツベットterests with those of shareholders, and I feel it is the kstake スポーツベットd of system that will be well received even from the perspective of stake スポーツベットvestors. How much of an stake スポーツベットcentive this provides to Directors is somethstake スポーツベットg that we must verify gostake スポーツベットg forward. With regard to the weightstake スポーツベットgs assigned to the evaluation of stake スポーツベットdividual contributions and the evaluation of the Company's results respectively, I thstake スポーツベットk it should also be possible to change this proportion somewhat, dependstake スポーツベットg on the role of the officer and their experience. Compensation for officers will vary accordstake スポーツベットg to their position. Dependstake スポーツベットg on the role taken by the officer, I thstake スポーツベットk we must consider what percentage of total compensation is fixed, and what percentage is performance-lstake スポーツベットked.
Murakami: When we talk about stake スポーツベットcentives for Directors, we do not mean the next one to two years. The issue is more about takstake スポーツベットg stake スポーツベットto account medium- to long-term factors. We have stake スポーツベットtroduced a performance-lstake スポーツベットked stock compensation system, but we must contstake スポーツベットue to focus on this to ascertastake スポーツベット whether the overall compensation structure provides appropriate stake スポーツベットcentives to Directors.
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