Effectiveness Evaluation

Evaluation of Effectiveness of the Board of Directors

NHK Spring believes that it is important to continuously strengthen corporate governance in order to achieve sustainable growth and improve corporate value over the medium to long term. In order to increase the confidence of stakeholders in NHK Spring's corporate governance, we have been analyzing and evaluating the effectiveness of the Board of Directors every year since FY2017 in accordance with the “Basic Policy on Corporate Governance”, and we are working to improve the identified issues.

Questionnaire Evaluation Method and Evaluation Content

Self-evaluation by questionnaire is conducted for Members of the Board and Members of the Audit & Supervisory Board. These steps and the questionnaire contents are as follows.

Evaluation Method and Contents

Overview of self-evaluation results

The following summarizes the results of the self-evaluation and the corresponding improvement measures.

  1. Overview of Evaluation Results in FY2023

    The results of the feedback for each evaluation item were generally high overall. In particular, the evaluation regarding questions “2) Operation of the Board of Directors” and “7) Support system and provision of information for External Directors” have improved as a result of the continuous efforts to improve the efficiency of the secretariat's operations and the further enhancement of prior explanations to External Directors. On the other hand, with regard to “Enhancing the deliberations in the Board of Directors”, it was recognized that there is a need to further enhance discussions not only on the resolution of individual proposals, but also on medium- to long-term management policies, etc.

  2. Implementation of Improvement Measures

    Based on the evaluation results for FY2023, we will work to improve the following points in FY2024.

    1. Review of existing Board of Directors agenda items in order to secure time for robust discussions on management

    2. Utilization of the expertise of External Directors and Audit & Supervisory Board Members (External) regarding important medium- to long-term management themes

    3. Realization of efficient and effective deliberations through further deepening of communication with External Directors

Questionnaire Results

The questionnaire results are as follows.

Board of Directors effectiveness evaluation Responses (Scores)