TDK, which first embarked on globalization in the 1960s and has successfully grown since then, remains constantly aware of global standards, and has worked to strengthen its corporate governance structure with an eye to the future. Backed by changes in its business structure, today TDK continues to consider measures needed to achieve long-term, sustainable improvement in corporate value.
Factors behind Strengthening of Corporate Governance
- Particularly in consumer components in the ICT field, performance will be affected by short-term market fluctuations. At the same time, it can take from several years to as much as a decade to see the results of investment in R&D expenses, and management decisions need to be based on a medium- to long-term perspective.
- As a global company, ensuring business moves forward smoothly requires a governance structure that is also compatible with the standards of countries in Europe and the Americas.
- With non-Japanese employees representing in excess of 90% of the workforce on a consolidated basis, TDK needs to consider further globalization at the director level.
History of Corporate Governance Reforms
Results of Fiscal 2017 Board of Directors' Evaluation
Issues revealed through the Board of Directors' evaluation
- Further advancement of management supervisory function
- Ongoing validation of TDK's further strategic growth
- Group company governance
- Greater transparency in executive discussions(greater sharing of discussions at the management meeting regarding proposals put before it)
Matters already addressed
- Changed the composition of inside Directors to exclude those in charge of business divisions, and include only those with a big-picture perspective on the Group as a whole (the chairman, president, and those in charge of corporate strategy and finance)
Matters to be addressed on a continuing basis
- Ongoing validation of TDK's medium- to long-term growth strategy
- Management that balances the dynamism and governance of Group companies
Important Medium- to Long-Term Issues
- Building of an effective hybrid governance structure that combines monitoring-type governance (separation of management execution and supervisory functions) and management-type governance (Directors also serve as executive officers)
- Formulation and administration of a global human resource strategic plan from a broad perspective that encompasses the TDK Group as a whole
View the full text of “Corporate Governance” on the PDF version.
Corporate Governance