Sustainability

Directors and Audit & Supervisory Board Members

Evaluation on the Effectiveness of the Board of Directors

With regard to its effectiveness, the Board of Directors issues a survey at the end of every fiscal year to directors and Audit & Supervisory Board members. The results are reported at the Board of Directors’ meeting, after the analysis and evaluation by an external organization, and NGK implements specific initiatives to enhance the effectiveness of the Board of Directors based on issues identified in the results of this evaluation.
Regarding the evaluation of the Board of Directors conducted in fiscal 2019, a survey with a total of 50 questions and an open-ended section was conducted in April 2020, and the results thereof were reported at a meeting of the Board of Directors. Regarding the overall evaluation, we received the following comments from the external organization.

  • The foundational elements required of the Board of Directors have been maintained, such as leadership, commitment, and its sound culture and operation. The Board of Directors also raised additional issues in order to make improvements.
  • Owing to the above, the external organization considers that the Board of Director possesses sustained effectiveness.
  • On top of issues previously identified, including the understanding of risks for important, large-scale projects, and the analysis of past management decisions, new issues were identified regarding the functions and composition of the Board of Directors, as well as the necessity of a medium- to long-term strategy.
  • More in-depth discussions on the ideal functions and composition of the Board of Directors are expected to contribute to further improvements in the effectiveness of the Board of Directors. Based on the results of this evaluation, NGK will continue endeavoring to maintain and strengthen the effectiveness of the Board of Directors, including implementing specific measures suited to actual circumstances at the Company.

Measures to Boost Effectiveness

Flow of measures to boost the effectiveness of the Board of Directors. Consists of three stages: Survey by questionnaire for directors and corporate auditors, analysis & evaluation based on the results of the questionnaire, and Improvement Initiatives based on the evaluation results.