The business environment going forward will be uncertain, volatile, and complex. To increase corporate value in such an environment, it is essential to select a management team in a manner that is objective, transparent and accountable, and to have a succession plan. To fulfill this role, the Appointment Committee functions as an advisory body to the Board of Directors, deliberating over the selection or dismissal of directors and plans for the development of successors for executive directors including the CEO.

The committee is to have one internal member, and at least three outside members, including at least one independent outside director. Moreover, with a view to ensuring diversity with regard to career background, expertise, culture, etc., the current committee comprises four members: Independent Outside Director Dr. Mariko Y Momoi, Non-Executive Director Teresa A. Graham, Representative Director, President & CEO Dr. Osamu Okuda, and myself. The committee is to be chaired by an outside director, and I was appointed to the role in March 2023.

In 2022, the Appointment Committee met twice, mainly to deliberate proposals for director candidates for the following fiscal year and the selection and development report on successor candidates to the CEO.
Based on this deliberation, I was appointed director, and the committee also examined the optimal director composition for promoting TOP I 2030 and increasing corporate value. I have been told that these were extremely multifaceted discussions and deliberation.

With regard to succession plans for the executive team, including CEO successor candidates, we need a long-term and broad-ranging development plan. The Appointment Committee monitors the development plan for the execution side and analyzes the results of external assessments, as well as having discussions with the successor candidates. The target group mainly comprises executive officers, extending to a secondary group of potential candidates for the following generation.

Currently, the development plan for the executive team is focused on the experience and capabilities needed to continue and evolve the Company’s unique business model, and on diversity. By incorporating fresh perspectives from newly appointed directors such as myself, we will engage in deeper discussion of this policy and methods for evaluating it. I will strive to enhance my conversations with candidates through various opportunities such as internal meetings and executive study sessions, and engage in continued discussion about the future vision for the Company’s management and its management team, with a view to contributing to the enrichment of the Company’s succession plans.