Corporate Governance

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.
In the evaluation of the Board of Directors conducted in fiscal 2018, the external organization found that foundational elements required of the Board of Directors have been established, such as the leadership of the Chairman of the Board of Directors, the commitment of its members, and its sound culture and operation, as well as that the Board of Directors are making continuous improvements and recognizes issues toward further progress. Accordingly, the external organization judged that the Board of Director possesses sufficient effectiveness. On the other hand, it was pointed out that further efforts to improve effectiveness by considering specific measures would be desirable, based on opinions from some members that there was room for improvement in areas such as the understanding of risks for important, large-scale projects, analysis of the reasons behind past management decisions, and the treatment and development of senior managers in key business departments. 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.