OMRON Receives METI Minister's Award for Corporate Governance of the Year 2018
- February 22, 2019
OMRON Corporation Chairman Fumio Tateishi receives the award certificate from Mr. Yoshihiko Isozaki , Senior Vice Minister of Economy、Trade and Industry Ministry of Economy, Trade and Industry (METI), at the commendation ceremony held on February 21.
OMRON Corporation (HQ: Shimogyo-ku, Kyoto. CEO: Yoshihito Yamada) has received the newly-established METI Minister's Award for Corporate Governance of the Year 2018, an award program organized by the Japan Association of Corporate Directors (JACD).
This award program has been organized by the JACD since fiscal 2015 with a view toward supporting companies that have achieved sound growth over the mid- and long-term through good corporate governance.
The METI Minister's Award is presented to companies recognized as having established a successful model of having an independent nominating committee and other organizations effectively supervise their plans concerning, in particular, the selection and succession of presidents and CEOs, the planning of which is fundamental for corporate governance. OMRON was selected for this prestigious award because it has maintained a high transparency of the CEO nomination process performed by the "CEO Selection Advisory Committee" which was established in 2006, has secured the effectiveness of the committee dedicated to appointing the CEO, and has achieved effective utilization of the committee.
Reasons for selecting OMRON for the METI Minister's Award
The company established a committee dedicated to the appointment of the CEO called the "CEO Selection Advisory Committee," stipulates a rule that the CEO shall not participate in deliberations at meetings of the committee, and discloses this rule in its corporate governance report. These efforts enhance the transparency of the process for appointing the CEO.
The committee is comprised of non-executive directors alone, in which the majority of the members and the chair of the committee are outside directors. The company appointed the current CEO in 2011 based on the discussion results of the committee, and every fiscal year since then, it has deliberated on and determined whether the CEO should remain in office based on their performance evaluation. In light of these facts, the company has secured the effectiveness of the committee dedicated to appointing the CEO and has achieved effective utilization of the committee.
Since the current CEO took office, the company has been showing a high level of performance as seen in an increasing ROE performance of the company which exceeds the market average.
METI News Release
OMRON has made constant efforts to improve its corporate governance since 1996 in a bid to achieve sustainable enhancement of corporate value. The "CEO Selection Advisory Committee," for which it has now been recognized, was established in 2006 in order to enhance transparency, objectivity, and timeliness of the CEO candidate selection process, thereby reinforcing the oversight functions of the Board of Directors. Chaired by an outside director, all of the committee members are non-executive directors, and the majority of the members are outside directors. The "CEO Selection Advisory Committee" meets annually to deliberate the selection of the next CEO, succession plans, and candidates in the event of an emergency.
We intend to continue our pursuit of ongoing corporate governance improvement as we develop our own unique vision of governance.
About the OMRON Corporate Governance Policies
OMRON Corporation established the OMRON Corporate Governance Policies*1 based on the Basic Stance for Corporate Governance. Since establishing the Management Personnel Advisory Committee in 1996, we have spent more than 20 years formalizing and strengthening our systems of corporate governance.
About OMRON Corporation
OMRON Corporation is a global leader in the field of automation based on its core technology of "Sensing & Control + Think." Established in 1933, OMRON has about 36,000 employees worldwide, working to provide products and services in 117 countries. The company's business fields cover a broad spectrum, ranging from industrial automation and electronic components to automotive electronics, social infrastructure systems, healthcare, and environmental solutions. For more information, visit OMRON's website: https://www.omron.com/
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