OMRON has established a solid governance system aimed at enhancing integrity and transparency of its management practices and to become more responsive to changes in the business environment.

To monitor and ensure that directors are properly functioning to represent OMRON’s shareholders and other stakeholders, two out of seven board members are outside directors. Also more than half of corporate auditors are outside auditors. Emphasizing the independence of these outside directors and auditors, OMRON has specified seven requirements for qualification of candidates. For example, candidates for outside directors or organizations to which they belong must not have assumed the role of representative or employee of the independent accounting auditor for the OMRON Group for five years prior to the nomination. They also may not be a principal shareholder of the OMRON Group.

To facilitate business operations, OMRON has adopted an executive officer system, which allows clear separation of management oversight and business execution. As such, the President is the only director who is also tasked with business execution. The internal company system empowers senior executives of each business unit with more authority for quicker decision-making and more streamlined business operations.

Corporate governance structure

Board of Directors

The BOD decides important business matters such as company objectives and management strategies, while overseeing the execution of business practices.

Board of Corporate Auditors

The board verifies the effectiveness of the corporate governance system and its implementation, while also monitoring the day-to-day operations of executives, including directors.

Personnel Advisory Committee

This committee, chaired by an outside director, sets election standards for directors and executive officers, selects candidates, and evaluates current executives.

President & CEO Selection Advisory Committee

Dedicated to nomination of the President and chaired by an outside director, this committee deliberates on selection of the new President for the next term and a succession plan in preparation for a contingency.

Compensation Advisory Committee

Chaired by an outside director, this committee determines the compensation structure for directors and executive officers, sets evaluation standards, and evaluates current executives.

Corporate Governance Committee

Also chaired by an outside director, this committee discusses strategies and measures for continued enhancement of corporate governance, as well as for raising the integrity and transparency of management practices.

Executive Council

This council determines and reviews important business operation matters that are within the scope of authority of the President.

• Corporate Governance ("Investor Relations")