Michiko Chiba
Outside Director, Audit & Supervisory Committee Member
The spirit of today's corporate governance reform in Japan is to enhance transparency of management and also achieve a wider perspective on business and management by taking account of the views of
outside directors. "The Kao Way" seems to share this spirit.
We apply four filters to these 1,517
outside director appointments to obtain our final sample.
Next, the top three
outside director candidates (in recommended asking order) are presented at a stockholder meeting for discussion and official vote.
In many studies of corporate boards researchers have categorized the role of
outside directors in large firms into three types: control, service, and resource dependence (see e.g., Johnson, Daily, & Ellstrand, 1996; Peng, 2004).
The relationship between the heterogeneity of
outside director tenure and financial performance is less clear.
* The performance goals are determined by a compensation committee of the corporation's board of directors, which is composed solely of two or more
outside directors (Sec.
The TSE has also picked journalist Nobuko Takahashi, 52, as its first woman
outside director since becoming a stock company.
It may be helpful for the board to designate an
outside director as the principal contact with the auditor.
An
outside director who knows the insurance and reinsurance business can help ask the right questions and be an invaluable asset to a captive insurer.