Shareholders and investors have made the practical and effective functioning of internal control into a key issue amidst an epidemic of corporate misconduct in Japan and overseas. In this section, Capcom will explain the corporate governance structure and systems that it has initiated so far based on the key concepts of "effectiveness and visibility" in terms of the results of third party assessment.
(Assessment areas are highlighted in yellow.)
Capcom's basic policy for Japan's Corporate Governance Code (PDF: 728KB/49 pages)
- Structure and
- External Directors
- Information on Shareholdings
- Internal Control
- Information Security
Promoting More "Visible" Governance
An analysis of an assessment performed by a third-party organization into the validity and effectiveness of Capcom's corporate governance shows that the company ranked 31st among 3,592 listed companies in Japan in the "NEEDS-Cges" assessment developed by Nikkei Digital Media, Inc.
NEEDS-Cges has an established reputation as a system that quantitatively assesses corporate governance using scores on a scale of 1 to 10 for eight categories, including capital efficiency, information disclosure, and external regulations, among others, based on some 150 indicators calculated from data of publicly released company documents, such as financial reports.
As of the end of June 2019, Capcom's total score was 8.00 points, placing us in the top 0.9% of Japan's listed companies, exceeding the 4.94-point average for all listed companies and the 7.02-point average for the industry. We also received the maximum score of 10 for "information disclosure."
The main evaluation factors are given in the table below, but areas highlighted in yellow indicate measures that received particular notice. Going forward, we will continue making improvements based on consideration of external data to earn an even stronger assessment, and further promote the external visibility of our governance.
Third-Party Assessment Results of Capcom's Corporate Governance
Comparison of the Industry Average and the Average for All Listed Companies
Details of Capcom's
Corporate Governance Assessment
|Categories||Fiscal 2018 Ratings||Fiscal 2019 Ratings|
|Equity market's assessment||10||8|
|Board of Directors||6||9|
31/3,592 Top 0.9%
Details of Categories
|Categories||Score||Areas that Received Particular Notice|
|Capital efficiency||9||Statistics related to free cash flow|
|Equity market's assessment||8||Tobin's Q|
|External regulations||9||Presence (or absence) of takeover defense measures|
|Board of Directors||9||Percentage of independent external directors, tenure of directors|
Treasury stock held by directors
|Information disclosure||10||Timing of Shareholders' Meetings (avoiding congested periods), degree of website detail. Early timing of Shareholders' Meeting invitations, utilization of electronic voting, presence or absence of English disclosure materials|
|Capital policies||8||Shareholder returns|
Source: NEEDS-Cges from Nikkei Inc.