Basic policy for corporate governance

In addition to enhancing corporate value by ensuring consistent and stable profits and future expansion of the Group’s business, the purpose of corporate governance is to engage in highly transparent and sound management that earns the trust of the society. The Company believes that managing the business while taking constant care to maximize profits for stakeholders including customers, employees, shareholders, business partners, government, and local communities helps enhance its value as a member of society. The Company will continue working hard to establish a highly transparent and sound management system by implementing thorough compliance (observance of laws and regulations), reinforcing monitoring functions, and disclosing information in a timely, appropriate, and fair manner.

Establishment of a discretionary nomination and remuneration committee

The Company has established a voluntary Nomination and Compensation Committee, and the Committee’s deliberations and decision-making process are used to determine the policy for determining executive compensation and the amount of compensation (actual amount paid).
The committee is chaired by Yumiko Sakurai, an independent outside director, and consists of three members, including Kenji Kamiya and Eriko Kitayama, the President and Representative Director and outside directors.
The committee evaluates each director and executive officer based on the evaluation standards established by the Company (five-point evaluation), and based on the results, based on the results of these deliberations, the Board of Directors deliberates on the appropriateness of the amount of remuneration for each position, within the limits set for each position, and reports back to the Board of Directors.