Tokyo, Japan - January 14, 2025
Yokogawa Electric Corporation has received the METI Minister's Award for Corporate Governance of the Year 2024 within an award program organized by the Japan Association of Corporate Directors (JACD).
This award program has been arranged by JACD since fiscal 2015 as part of the Japanese government's growth strategy to promote the earning potential of Japanese companies by encouraging companies to achieve sound growth over the medium- to long-term through good corporate governance.
This year, Yokogawa has been recognized as a company that is making advanced efforts in the selection of the president/CEO and succession planning, which are the cornerstones of governance. The main points that were evaluated are as follows:
- Since the establishment of the Nomination Advisory Committee in fiscal 2015, Yokogawa has established and operated a management development and evaluation program for the screening and training of the next president and corporate executives. This is reviewed as necessary to establish an effective nomination process that includes the evaluation, development, and selection of the next president.
- The Nomination Committee sets standards and procedures for the selection, re-selection, and removal of the president. Each year, the president and representative executive officer are evaluated based on criteria that include performance in a single year, achievement of medium-term numerical targets, development of successors, and leadership. This process ensures objectivity, transparency, and continuity. In addition, the process is effectively utilized for management execution in the following year and beyond.
- The chairperson of the Nomination Committee and the chairperson of the Board of Directors are both independent outside directors. In addition, from this fiscal year, the institutional design was changed to a company with a nominating committee, etc., and corporate governance reform is steadily progressing.
- The entire company is making efforts to change the business model, such as changing to a solution-oriented approach and restructuring business segments, and understanding in the field is deepening. In addition, the management is taking risks such as investing for growth.
- The Company has achieved a high level of financial performance, with high price-to-book ratio and total shareholder return, and rising return on equity and return on total assets.
Yokogawa will continue to enhance corporate governance with the aim of achieving sustainable growth and increasing corporate value over the medium to long term.
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