CAPCOM Investor Relations

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IR Top Page > Management Objectives > Corporate Governance

Corporate Governance

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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.)

(as of October 31, 2019)

Third-Party Assessment

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

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  
Total Score 7.20 8.00
Capital efficiency 9 9
Equity market's assessment 10 8 DOWN
External regulations 9 9
Board of Directors 6 9 UP
Officer remuneration 8 8
Information disclosure 10 10
Capital policies 5 8 UP
Effectiveness 4 4
Rank 184 31 UP

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
Officer remuneration 8

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
Effectiveness 4 Auditors' comments

Source: NEEDS-Cges from Nikkei Inc.

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