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IR Top Page > Management Objectives > Corporate Governance

Corporate Governance

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.)

PDF Corporate Governance Report (PDF: 1.07MB/69pages)

Open HTML version HTML format

(as of November 12, 2020)

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 131st among 3,635 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 2020, Capcom’s total score was 7.28 points, placing us in the top 4.0% of Japan’s listed companies, exceeding the 4.83-point average for all listed companies and the 6.53-point average for the industry. We also received the maximum score of 10 for "capital efficiency," "equity market’s assessment" and "information disclosure."

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

Comparison of the Industry Average and the Average for All Listed Companies

Details of Capcom's
Corporate Governance Assessment
Categories Fiscal 2019 Ratings Fiscal 2020 Ratings  
Total Score 8.00 7.28 DOWN
Capital efficiency 9 10 UP
Equity market's assessment 8 10 UP
External regulations 9 9
Board of Directors 9 6 DOWN
Officer remuneration 8 8
Information disclosure 10 10
Capital policies 8 6 DOWN
Effectiveness 4 3 DOWN
Rank 31 131

131/3,635 Top 4.0%

Details of Categories
Categories Score Areas that Received Particular Notice
Capital efficiency 10 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 6 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 6 Dividend on Equity
Effectiveness 3 Auditors' comments

Source: NEEDS-Cges from Nikkei Inc.