Governance | Third-Party Assessment

Shareholders and investors have made the 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 Corporate Governance Guidelines (December 16, 2021)

    PDF

  • Corporate Governance Report (December 16, 2021)

    PDF

  • 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 45th among 3,701 listed companies in Japan in the “NEEDS-Cges” assessment developed by Nikkei 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, external regulations, and information disclosure, 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 2021, Capcom’s total score was 7.60 points, placing us in the top 1.46% of Japan’s listed companies (excluding some in the financial and other sectors), exceeding the 4.75-point average for all listed companies and the 6.66-point average for the industry. We also received the maximum score of 10 for “equity market’s assessment.”

    The main evaluation factors are given in the table below, and areas highlighted in yellow indicate measures that received particular notice. Going forward, we will continue making improvements to earn an even stronger assessment, and further promote the 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 2020 Ratings Fiscal 2021 Ratings
    Total Score 7.28 7.60 UP
    Capital
    efficiency
    10 9 DOWN
    Equity market’s
    assessment
    10 10 FLAT
    External
    regulations
    9 9 FLAT
    Board of
    Directors
    6 7 UP
    Officer
    remuneration
    8 8 FLAT
    Information
    disclosure
    10 8 DOWN
    Capital policies 6 9 UP
    Effectiveness 3 3 FLAT
    Rank 131 45 UP

    45/3,701 Top 1.46%

    Details of Categories

    Categories Score Areas that Received
    Particular Notice
    Capital
    efficiency
    9 ROA, ROE, statistics
    related to free cash flow
    Equity market’s
    assessment
    10 Tobin’s Q
    External
    regulations
    9 Presence (or absence)
    of takeover defense measures
    Board of Directors 7 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), early timing of Shareholders’ Meeting invitations, utilization of electronic voting, presence or absence of English disclosure materials
    Capital
    policies
    9 Related to DOE,
    shareholder return ratio
    Effectiveness 3 Auditors’ comments

    Source: NEEDS-Cges from Nikkei Inc.