CEO Evaluation Committee
*For the ease of comprehension of our international investors, this Committee is referred to as the "CEO Evaluation Committee." In this context, "CEO" refers to DISCO's Representative Executive Officer and President, who also serves as Chief Executive Officer and is in charge of overseeing overall business execution. "Representative Executive Officer" is a statutory position under the Companies Act of Japan.
Overview
Role
This Committee evaluates items such as the core management policies of CEO* and business performance, notifies and reports the evaluation results to CEO, and makes recommendations to the Board of Directors regarding the dismissal of CEO as necessary. Through these actions, the Committee holds the role of strengthening the Board of Directors' deliberative function for the selection/dismissal of CEO.
Members
This Committee is comprised of all outside directors.
Operation
Particulars regarding the evaluation items, evaluation procedure, resolution method, recommendation of matters such as dismissal, and other necessary items regarding this Committee are stipulated in the "CEO (Representative Executive Officer) Evaluation Committee Regulations." As all Committee members share these clearly defined standards, they are able to pass a resolution to replace any ineligible CEO without hesitation.
＜Core management policies/Evaluation details＞
| Core management policies | Evaluation details | |
|---|---|---|
| 1 | Policies regarding corporate culture | How well DISCO VALUES, the company's corporate philosophy that identifies DISCO's ideals such as the direction in which the company should progress and the basic approach of management, is instilled in the company |
| 2 | Policies regarding evolution and improvement | How well PIM (Performance Innovation Management: activities to promote improvement and efficiency in work) is being promoted throughout the whole company |
| How well the Personal Will Accounting (DISCO group's unique managerial accounting system that visualizes the individual performance of each employee) is being promoted | ||
| 3 | Policies to improve employee satisfaction | ES (Employee Satisfaction) Survey results, external survey rankings regarding job satisfaction |
CEO Evaluation Committee Model Diagram
Purpose of establishment
This Committee was established in order to address the risk of a management where DISCO's core management policies are neglected and corporate culture is damaged as a result of the turnover of CEO that will repeatedly occur in the future. The items regarding CEO that are evaluated by this Committee have been selected so that such a risk can be discovered at an early stage should it become apparent.
The purpose of this Committee is to prevent the company's corporate values from deteriorating significantly as a result of ineligible CEO damaging the DISCO group's corporate culture or interfering with the company's sustained growth.