We have been conducting an annual analysis and assessment of the effectiveness of the Board of Directors since FY2015 in order to improve its functionality.
(1) Method for analyzing and assessing the overall effectiveness of the Board of Directors
The Board of Directors analyzed and assessed the overall effectiveness of the Board of Directors based on the results of the following questionnaire.
- Method: Anonymous questionnaire
- Target: Nine directors in office at the end of March 2025
- Period: From April 2024 to March 2025
- Evaluation items: “Composition of the Board of Directors,” “Effectiveness of the Board of Directors,” “Operations of the Board of Directors,” “Deliberation Process of the Board of Directors,” “Information Gathering, and Support Structure,” etc.
(2) Overview of results for analyzing and assessing the overall effectiveness of the Board of Directors
Of the deliberation processes of the Board of Directors, the results of the FY2024 assessment showed higher scores for “discussion on establishing and operating internal control and risk management systems” and “understanding and discussing business risks”.
The assessment also stated that discussion at the Board of Directors has become more active and this is increasing the effectiveness of the Board of Directors, as exemplified by discussion at meetings being held from various viewpoints.
On the other hand, the assessment noted that although the Board of Directors has cultivated a culture of discussing the direction of short- to medium-term strategies, it would be better if there was more discussion on medium- to long-term issues, such as the allocation of management resources.
In light of these results, we will implement the required measures as appropriate and improve and strengthen our corporate governance system even more by diligently addressing the issues that arise and fully considering opinions, so that we can enhance board effectiveness.
