The Company considers that the selection of succession candidates for the President and CEO requires the involvement of the incumbent, who is also responsible for the development of the succession plan. On the other hand, in the event that the current President and CEO has an option of reappointment, its necessity shall be considered only by the Chair and external directors of the Nomination & Remuneration Advisory Committee in order to ensure the fairness of deliberations. The Nomination & Remuneration Advisory Committee receives full reports from the President and CEO on the succession plan and the specific nomination for successor, then exchanges opinions and provides feedback to the President and CEO, evaluating the candidates from an independent perspective as well as the Company’s management issues. Specific successor candidates are evaluated by the CEO Review Meeting, which consists of external directors and external Audit & Supervisory Board members, based on a candidate proposal by the President and CEO. The CEO Review Meeting makes an independent and objective judgment as to whether the candidate is suitable. Since the Nomination & Remuneration Advisory Committee, which includes the CEO Review Meeting, performs certain important functions of the Board of Directors, the Board respects the committee’s judgement. Furthermore, when actually selecting the President and CEO’s successor, the Nomination & Remuneration Advisory Committee deliberates fully on matters such as the final candidate and their selection process, prior to reporting its opinion. The Board of Directors accords this report the utmost respect in passing a resolution regarding the selection.
In the event that the Company’s President and CEO cannot select a successor candidate, the Nomination & Remuneration Advisory Committee may take the leading role in the selection.
In 2019, the Board of Directors approved the extension of the term of office of current President and CEO Uotani, as well as the framework of a concrete succession plan, etc. In 2020, we commenced the execution of the succession plan and reported its progress to the Nomination & Remuneration Advisory Committee and the Audit & Supervisory Board.
The Company believes that it is important to have succession plans not only for the President and CEO but also for external directors and external Audit & Supervisory Board members, who play key roles in supervising business management. Matters regarding the succession plans, such as the term of office, clear criteria for successor candidates, and further strengthening of diversity, are subject to the review by the Nomination & Remuneration Advisory Committee.
The Company also believes that in addition to appointing personnel having credentials required to serve as directors, Audit & Supervisory Board members, or executive officers, it is important to provide them with necessary training and information. Therefore, the Company provides candidates for new directors and new Audit & Supervisory Board members with training regarding legal and statutory authorities and obligations, etc. In addition, when a new external director or external Audit & Supervisory Board member is scheduled to come on board, the Company provides training regarding the industry it operates in, its history, business overview, strategy, etc.
Furthermore, to cultivate the next generation of management, executive officer candidates are provided with training programs to nurture their leadership abilities and management expertise required for top management.