Since fiscal 2023, OMRON’s Corporate Governance Committee has included non-executive internal Directors, enabling discussions from more diverse perspectives. In fiscal 2024, the Committee worked on initiatives to enhance the effectiveness of the Board of Directors. Notably, by clearly defining the roles of each Director, we established a foundation that can be applied to the design of future executive compensation structures and the requirements for Director appointments. In addition, our examination of the introduction of third-party evaluations serves as a cornerstone for strengthening effectiveness even further. The Committee continues to evolve as a forum for meaningful discussions that contribute to the sustainable enhancement of corporate value. Looking ahead, it will be increasingly important to deepen concrete discussions on corporate value enhancement, and to draw a clear picture of the kind of company OMRON aspires to become and the value it aims to create. The Committee remains committed to achieving OMRON’s sustainable growth through the further advancement of corporate governance.

One of the most important roles of the Personnel Advisory Committee is to identify the type of leadership OMRON needs to achieve sustainable corporate value enhancement. To this end, the Committee, led primarily by independent Outside Directors, ensures transparency and objectivity in executive appointments, while supporting optimal talent placement aligned with strategy through ongoing dialogue with management. As OMRON undergoes a transformative phase toward growth, it is particularly vital to appoint a diverse range of leaders equipped with expertise in digital transformation, the ability to keenly grasp social and industry trends, and the ability to take bold risks. With this perspective, the Committee has been engaging in extensive discussions aimed at strengthening oversight functions and establishing the most effective management structure. The Committee remains committed to supporting OMRON’s sustainable growth through continually pursuing the optimal structure for the company.

The Compensation Advisory Committee aims to maximize corporate value by “providing strong incentives to Directors and Executive Officers, who put the corporate philosophy into practice, thereby realizing the long-term vision, and contributing to sustainable growth and medium- to long-term value enhancement.” It also strives to ensure the transparency and objectivity of the compensation plan, thereby fostering a deeper understanding of management among all stakeholders. The revision to the compensation plan implemented this fiscal year was made in light of the transition from structural reform to the growth phase, aimed at redesigning it into a well-balanced framework that supports both the completion of structural reforms and the acceleration of growth. Looking ahead to the launch of the next medium-term management plan, “SF2030 2nd Stage,” we will continue to review and refine the compensation structure, ensuring that it remains responsive to the evolving business environment and governance requirements, while consistently contributing to the sustainable enhancement of corporate value.