January 19, 2021
TDK Corporation (TSE: 6762) is pleased to announce that it has won the 2020 Minister of Economy, Trade and Industry (METI) Award for Corporate Governance of the Year, presented by the Japan Association of Corporate Directors (hereinafter “JACD,”).
The Corporate Governance of the Year is an award program that was launched in FY2015 as part of a Japanese government growth strategy. The awards have been provided for the purpose of supporting companies, which have achieved and maintained long-term profitability by implementing good corporate governance with the ultimate goal of revitalizing the earnings power of Japanese companies.
TDK has been selected as the 2020 winner in recognition of the company's advanced initiatives concerning its appointment and succession planning for its President and CEO, which forms the foundation of governance.
Specifically, the following points were highly evaluated.
1. The company has established a Nomination Advisory Committee with a majority of members being independent outside directors that is chaired by an independent outside director to ensure effective supervision of the appointment of and succession planning for the President. In addition, the company has applied third-party perspectives to ensure fulfilling discussion by initiatives such as including this committee in the subjects for the evaluation by third parties and has conducted the regular evaluation of the committee. Further, the company's transparency in its appointment of and succession planning for its President is high. For example, it discloses the activities of the Nomination Advisory Committee and the results of third-party evaluations in its Corporate Governance Report, Integrated Report, and other documents.
2. When the current President was appointed in 2016, the members of the Nomination Advisory Committee and an external specialized institution interviewed each candidate multiple times, with the leading role played by the person who was then the chairperson of the committee, to select an appropriate candidate capable of achieving sustainable growth. Thus, the aptitude of the candidates was judged objectively, and the performance of the President has been evaluated effectively thereafter. In addition, the creation of succession plan in view of the future has been developed by initiatives such as the creation of a medium- to long-term program for proactively developing executive candidates under the leadership of the President.
3. Since the current President assumed office, he has been engaged in global management of the company from a medium- to long-term perspective while ensuring thorough communication and the sharing of information with independent outside directors. As a result, the company has shown a high level of performance as reflected in the total shareholder return (TSR), which exceeds the industry average.
For details of TDK’s corporate governance initiatives, please visit the following link.
For more information about the 2020 Corporate Governance of the Year award, please visit the JACD website.
Moving forward, TDK will continue working to improve its corporate governance, in order to achieve sustainable growth and improve its corporate value in the medium- to long-term.
About TDK Corporation
TDK Corporation is a world leader in electronic solutions for the smart society based in Tokyo, Japan. Built on a foundation of material sciences mastery, TDK welcomes societal transformation by resolutely remaining at the forefront of technological evolution and deliberately "Attracting Tomorrow." It was established in 1935 to commercialize ferrite, a key material in electronic and magnetic products. TDK's comprehensive, innovation-driven portfolio features passive components such as ceramic, aluminum electrolytic and film capacitors, as well as magnetics, high-frequency, and piezo and protection devices. The product spectrum also includes sensors and sensor systems such as temperature and pressure, magnetic, and MEMS sensors. In addition, TDK provides power supplies and energy devices, magnetic heads and more. These products are marketed under the product brands TDK, EPCOS, InvenSense, Micronas, Tronics and TDK-Lambda. TDK focuses on demanding markets in automotive, industrial and consumer electronics, and information and communication technology. The company has a network of design and manufacturing locations and sales offices in Asia, Europe, and in North and South America. In fiscal 2020, TDK posted total sales of USD 12.5 billion and employed about 107,000 people worldwide.
Contacts for media
|Mr. Yoichi OSUGA||TDK Corporation