Sustainability

Corporate Governance

Evaluation on the Effectiveness of the Board of Directors

With regard to its effectiveness, the Board of Directors issued a survey on the fiscal year ended March 31, 2018 to all directors and audit & supervisory board members. The results were reported at the Board of Directors meeting, after an analysis and evaluation by an external organization. In addition, the secretariat of the Board of Directors conducted initiatives in fiscal 2017 to improve the effectiveness of the Board of Directors. Such initiatives included interviewing directors and audit & supervisory board members individually, getting opinions on specific measures that can improve the effectiveness of the Board of Directors, and based on results of the interview, enriching discussions regarding themes related to long-term strategies. As a result, the Board of Directors was evaluated as effective, with its strength in how, under the leadership of the Chairman of the Board of Directors, each Director participates to conduct sound and transparent discussions while complying with governance requirements. We were evaluated by the external organization as having continued to retain this strength from the previous fiscal year. On the other hand, the following were raised as issues that needed to be further examined for their status or to be further discussed at Board of Directors meetings: a succession plan for the chief executive officer, cultivation of senior management, and understanding of risks for important, large-scale projects. Based on these results, NGK will work to continue to maintain and strengthen the effectiveness of the Board of Directors.

For more details, please refer to

NGK Report 2018 Corporate Governance (PDF)