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: Term of Office of Directors: Update

Japan's Governance: Organizational Structure

Japan's Governance: Update on the ％ of Independent Outside Directors

Japan's Governance: Who Chairs the Board?

Japan's Governance: Update On "Transitional Measures" For TSE Market Reorganization

Japan's Governance: Disclosure on Ex-CEO Advisors

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<p>In this issue, I would like to discuss the term of office of board directors of listed companies in Japan. The term of office for directors used to be two years in the past, but since the Corporate Governance Code came into effect in 2015, more and more companies are changing their term of office from two years to one year every year. Although there is no reference to the term of office of directors in the principles of the Corporate Governance Code, it is assumed that there is a growing trend to shorten the term of office to one year as part of efforts to improve corporate governance practices. Of course, the reason behind this move was probably related to listed companies' intentions to engage foreign institutional investors, which have increased their presence as shareholders, and to exercise their voting rights.</p>

In this issue, I would like to discuss the term of office of board directors of listed companies in Japan. The term of office for directors used to be two years in the past, but since the Corporate Governance Code came into effect in 2015, more and more companies are changing their term of office from two years to one year every year. Although there is no reference to the term of office of directors in the principles of the Corporate Governance Code, it is assumed that there is a growing trend to shorten the term of office to one year as part of efforts to improve corporate governance practices. Of course, the reason behind this move was probably related to listed companies' intentions to engage foreign institutional investors, which have increased their presence as shareholders, and to exercise their voting rights.

Japan's Governance: Term of Office of Board Directors

TSE Tokyo Price Index TOPIX

Japan's Governance: Term of Office of Board Directors