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2018 Japan Spencer Stuart Board Index

2018 Japan Spencer Stuart Board Index

Japan Board Index 2018The 2018 Spencer Stuart Japan Board Index provides an analysis of the boards of companies listed on the Nikkei 225 and TOPIX 100 indexes, insight into the issues the boards are facing and comparative data from other countries. To view the Japanese version, click here.

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  • The Revised Companies Act and Corporate Governance Code of 2015 introduced a supervisory body, the audit and supervisory committee, with the aim of enhancing a board’s supervisory function. For this reason, companies now have three options: "company with kansayaku board," "company with three committees" and "company with supervisory committee." More than three years have passed since the revision of the law, and the majority of Nikkei 225 companies and TOPIX 100 companies still have a board of corporate auditors.
  • Nikkei 225 companies have 795 external directors and TOPIX 100 companies have 393, and both figures are increasing. The ratio of independent directors among external directors is 95.7% for Nikkei 225 companies and 98.7% for TOPIX 100 companies, and independent external directors with no conflict of interest are establishing a stronger presence in both indexes.
  • Companies that have two or more independent outside directors are 99.6% at Nikkei 225 companies and 99.0% at TOPIX 100 companies, and almost all companies have achieved the level set by the corporate governance code.
  • Foreign directors have been appointed at 20.9% of Nikkei 225 companies and at 31.0% of TOPIX 100 companies, a continuing upward trend. The ratio of foreign nationals on boards is 3.3% for Nikkei 225 companies and 5.0% for TOPIX 100 companies. Both are showing a slight increase, but remain low compared with France at 35.0%, United Kingdom at 33.5%, Germany at 25.3% and United States at 8.2%.
  • The percentage of female directors is 56.4% for Nikkei 225 companies and 66.0% for TOPIX 100 companies. These numbers are steadily increasing each year, but are far below the 99% we see in France, United Kingdom, United States and Germany. The ratio of women among all directors is 6.5% for Nikkei 225 companies and 7.6% for TOPIX 100 companies. These figures are far below the ratio of over 20% from the four countries named above.
  • When looking at the background of outside directors, nearly 50% of those from Nikkei 225 companies and TOPIX 100 companies come from the private sector. Of those, more than 70% have experience as president, chairman or CEO.

 

Japan Board Index 2018The 2018 Spencer Stuart Japan Board Index provides an analysis of the boards of companies listed on the Nikkei 225 and TOPIX 100 indexes, insight into the issues the boards are facing and comparative data from other countries. To view the Japanese version, click here.

Download now >

  • The Revised Companies Act and Corporate Governance Code of 2015 introduced a supervisory body, the audit and supervisory committee, with the aim of enhancing a board’s supervisory function. For this reason, companies now have three options: "company with kansayaku board," "company with three committees" and "company with supervisory committee." More than three years have passed since the revision of the law, and the majority of Nikkei 225 companies and TOPIX 100 companies still have a board of corporate auditors.
  • Nikkei 225 companies have 795 external directors and TOPIX 100 companies have 393, and both figures are increasing. The ratio of independent directors among external directors is 95.7% for Nikkei 225 companies and 98.7% for TOPIX 100 companies, and independent external directors with no conflict of interest are establishing a stronger presence in both indexes.
  • Companies that have two or more independent outside directors are 99.6% at Nikkei 225 companies and 99.0% at TOPIX 100 companies, and almost all companies have achieved the level set by the corporate governance code.
  • Foreign directors have been appointed at 20.9% of Nikkei 225 companies and at 31.0% of TOPIX 100 companies, a continuing upward trend. The ratio of foreign nationals on boards is 3.3% for Nikkei 225 companies and 5.0% for TOPIX 100 companies. Both are showing a slight increase, but remain low compared with France at 35.0%, United Kingdom at 33.5%, Germany at 25.3% and United States at 8.2%.
  • The percentage of female directors is 56.4% for Nikkei 225 companies and 66.0% for TOPIX 100 companies. These numbers are steadily increasing each year, but are far below the 99% we see in France, United Kingdom, United States and Germany. The ratio of women among all directors is 6.5% for Nikkei 225 companies and 7.6% for TOPIX 100 companies. These figures are far below the ratio of over 20% from the four countries named above.
  • When looking at the background of outside directors, nearly 50% of those from Nikkei 225 companies and TOPIX 100 companies come from the private sector. Of those, more than 70% have experience as president, chairman or CEO.