Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

Japan's Governance: Considerations for Bank Stocks

Japan's Governance: Labor Productivity and Gender Diversity

Japan's Governance: Organizational Structure

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<p>In my previous article, "Nomination Committee," I provided information on the status of nomination committees of listed companies in Japan by the organizational structure of the company. Then, in order to understand how these nomination committees operate, we examined and presented (1) whether the nomination committee is a statutory nomination committee or a voluntary statutory nomination committee, (2) whether the nomination committee is composed of a majority or a minority of outside directors, and (3) whether the nomination committee is chaired by an outside director. Based on the hypothesis that "in order for the Nomination Committee to function properly, the Board of Directors would operate more properly if it had a majority of outside directors," we verified this hypothesis by showing the ratio of outside directors on the Board of Directors. As a result, it was confirmed that shifting to a company with a nominating committee, etc., where a legal nominating committee is established, is a promising way for the appropriate operation of the nominating committee to function. It was also found that in many companies with other organizational forms, outside directors do not constitute a majority of the board of directors in a limited number of companies, and that there is no small possibility that the nominating committee is not operating properly. In this article, I would like to update the above analysis as new indications were found in the data as of the end of September 2021.</p>

In my previous article, "Nomination Committee," I provided information on the status of nomination committees of listed companies in Japan by the organizational structure of the company. Then, in order to understand how these nomination committees operate, we examined and presented (1) whether the nomination committee is a statutory nomination committee or a voluntary statutory nomination committee, (2) whether the nomination committee is composed of a majority or a minority of outside directors, and (3) whether the nomination committee is chaired by an outside director. Based on the hypothesis that "in order for the Nomination Committee to function properly, the Board of Directors would operate more properly if it had a majority of outside directors," we verified this hypothesis by showing the ratio of outside directors on the Board of Directors. As a result, it was confirmed that shifting to a company with a nominating committee, etc., where a legal nominating committee is established, is a promising way for the appropriate operation of the nominating committee to function. It was also found that in many companies with other organizational forms, outside directors do not constitute a majority of the board of directors in a limited number of companies, and that there is no small possibility that the nominating committee is not operating properly. In this article, I would like to update the above analysis as new indications were found in the data as of the end of September 2021.

Japan's Governance: Nomination Committee Update

TSE Tokyo Price Index TOPIX

Japan's Governance: Nomination Committee Update