Features of Shiseido’s
Corporate Governance
The Shiseido Group including the Company has established BEAUTY INNOVATIONS FOR A BETTER WORLD as OUR MISSION in its Corporate Philosophy, THE SHISEIDO PHILOSOPHY, and defines corporate governance as the “platform to realize sustainable growth through fulfilling OUR MISSION.” We strive to maximize medium-to-long-term corporate and shareholder value by implementing and reinforcing corporate governance to maintain and improve management transparency, fairness, and speed, and through dialogue with all stakeholders, from employees, consumers, business partners, and shareholders to society and the earth. At the same time, by fulfilling its responsibilities as a public entity of society, Shiseido works to optimize the value it delivers to respective stakeholders.
The Shiseido Integrated Report 2022 makes the most of its digital connectivity to focus on the following unique content.
For general and detailed information regarding corporate governance, please refer to the links below.
Shiseido’s Governance in Numbers
Directors and Audit & Supervisory Board Members (Skill Matrix)
Chairman and CEO
President and COO
Senior Executive Officer
Senior Executive Officer
- ●：Knowledge and expertise which the Company especially expects the relevant candidate to demonstrate
- ◯：With the relevant knowledge and expertise
Main experience
CEO Succession Plan
In response to the 5-year extension of the incumbent CEO’s term of office decided in 2019, the Company developed the framework of a succession plan and launched it after obtaining approval at the Board of Directors meeting so that the successor can smoothly take over CEO’s responsibilities without any problem. In this 5-year succession plan, after selecting the successor over the first three years, the successor works as the COO in cooperation with the CEO for the remaining two years. The Company aims to realize a smooth CEO succession and strengthen its management structure by making the successor have ample time to take on the responsibility to lead the Company in cooperation with the incumbent CEO.
The CEO and the members of the Nomination & Remuneration Advisory Committee had fully discussed the necessary qualifications and requirements for CEO, the focal point of successor selection, training policy, etc., from a medium-to-long-term perspective, and taking into account the Company’s business environment, and then examined/implemented training programs for the carefully screened candidates so that they can fully demonstrate their ability. The members of the Nomination & Remuneration Advisory Committee had taken much time to hold in-depth discussions while collecting information from the incumbent CEO, referring to the results of the assessments conducted by external experts, and conducting personal interviews with candidates so that they can nominate the best successor among all candidates selected from inside/outside the Company. Additionally, they had regularly exchanged opinions with external Audit & Supervisory Board members. All things considered, the successor of the CEO was finally approved at the Board of Directors meeting.
Toward the launch of the new management structure in January 2023, the successor of the CEO was selected in accordance with the framework of the succession plan and through the objective and transparent process mainly led by external directors and Audit & Supervisory Board members. The external directors and Audit & Supervisory Board members continue to monitor the new management structure so that the COO can, through the joint management of the CEO and COO, smoothly assume the post of CEO.
Effectiveness of the Board of Directors
The Company believes that a truly effective Board of Directors requires exhaustive discussions at the Board meetings upon sharing appropriate information with external directors regarding the Company’s basic management policy and important management topics. Important topics are carefully deliberated by the Board over a number of meetings, including off-site meetings, ensuring that policies and decisions made are backed by a sufficient amount of information and deliberation.
The Company also places particular importance on the diversity of its directors and Audit & Supervisory Board members, with the belief that diverse opinions stemming from various expertise and insights result in versatile discussions, which are indispensable for an effective Board.
- Appointment of the Next President
- Medium-to-Long-Term Strategy
- Sustainability Management Strategy
- Strategies for Future Business in Japan
- Strategies for Future Business in China
- Transfer of the Manufacturing Business of Personal Care Products
- Transfer of Professional Business
- Corporate Governance
- Major Risks Faced by the Shiseido Group
- Information Security Initiatives
- Reports on Investor Relations (e.g., Investor Feedback)
Opportunities to Share Information and Exchange Opinions with External Directors and Audit & Supervisory Board Members Outside of Board Meetings
In 2022, we made efforts to enhance understanding of the company among external directors by regularly providing them with more information and opportunities to exchange opinions. As a result, there were more information sharing and discussions compared to 2021.
