About Board of Directors

Selection Policy and Process for Director Candidates

The policy for selecting candidates for the Board of Directors is as follows

The ability to make quick decisions based on an understanding of the management philosophy, excellent business judgment, and extensive business experience.
Contribution to the further growth and development of the Group's business
Ability to understand the risks, challenges and issues facing the Company and the ability to resolve them.
High awareness and insight into laws and regulations and corporate ethics.

Based on this policy, the Nominating Advisory Committee

Views on Independence

The Company ensures the independence of its independent outside directors by referring to the standards set forth by the financial products exchange. The Company selects candidates who have the qualities that can be expected to engage in vigorous debate at Board of Directors meetings from an independent standpoint.

Directors' Compensation

The remuneration system for directors consists of monetary remuneration as well as granting restricted stock compensation, a non-monetary remuneration newly introduced in February 2021. The Compensation Advisory Committee comprehensively discusses the Company's business performance, management situation, and their respective contributions to management, and the total amount of compensation is reviewed annually within the range determined by the General Meeting of Shareholders and decided by the Board of Directors. The introduction of granting restricted stock compensation was approved at the General Meeting of Shareholders held in February 2021 for the purpose of providing incentives to continuously improve the Company's corporate value and to further promote value sharing with shareholders.

Diversity of Board Members

The Company's Board of Directors is composed of directors who are selected based on their ability to make decisions quickly based on their extensive experience and a balance of expertise in management, sales, and administration, as well as outside directors who have extensive experience and insight in business management. In addition, the Company has set the number of Board of Directors at 10 or less for the purpose of prompt decision-making.