Sustainability
Corporate Governance
Governance Structure
At Hisamitsu Pharmaceutical, we will reinforce our corporate governance, while enhancing our corporate value by ensuring further management transparency and legal compliance and continuing risk management. As a good corporate citizen, we intend to strengthen the relationships of trust we have with our stakeholders.
Corporate Governance Structure
At Hisamitsu Pharmaceutical, we are striving to further improve our corporate governance structure as a mechanism for making transparent, fair, prompt, and decisive decisions. As a company with Board of Corporate Auditors, we have nine Directors (including three Outside Directors) and four Corporate Auditors (including two Outside Corporate Auditors), constituting the Board of Directors and the Board of Corporate Auditors, respectively. The Board of Directors is composed in consideration of diversity and each member’s ability, experience, and insight. Each term is set as one year for the purpose of further clarifying directorial management responsibility and creating a management structure that enables appropriate responses to changes in the business environment. Management decisions are made based on discussions by the Management Advisory Board, comprising the main Directors, Executive Officers, etc. as needed, whereas particularly important agendas are deliberated and decided by the Board of Directors. Additionally, the Executive Officer system is introduced in order to enhance the speed, transparency, and strategic quality of management decisions. Moreover, the Nomination and Remuneration Committee has been established as an advisory body for the Board of Directors. With Outside Directors accounting for half of the membership, the committee has been designed to make management even more transparent and objective. To perform even fairer audits, our Corporate Auditors attend board meetings, hold meetings of the Board of Corporate Auditors on a regular basis, and conduct audits in cooperation with the Internal Auditing Department and an accounting auditor, thereby striving to reinforce the entire corporate group’s audit structure.
Corporate Governance Structure system
![Corporate Governance Structure system](/__assets/images/sustainability/cg/cg01_photo01.png)
List of officers ・ ・ ・ As of May 25, 2023
Directors
President and CEO | Kazuhide Nakatomi |
---|---|
Senior Managing Director, Executive Officer Management of Human Resources and R&D and Management of Corporate Development |
Kosuke Sugiyama |
Managing Director, Executive Officer Global Business Strategy |
Kyu Saito |
Director, Executive Officer Head of Legal Department, And Management of Production, And Management of Quality Assurance & Pharmacovigilance, And Management of Compliance |
Nobuo Tsutsumi |
Director, Executive Officer Management of Internal Audit Division, And Management of Domestic Subsidiary Division |
Shinichi Murayama |
Director, Executive Officer Executive Secretary President’s Office, And Management of Digital Transformation, And Management of Sustainability Promotion |
Koji Takiyama |
Outside Director (part-time) | Yuichiro Anzai |
Outside Director (part-time) | Tetsugo Matuo |
Outside Director (part-time) | Tamako Watanabe |
Corporate auditors
Corporate Auditor | Nobuyuki Nakatomi |
---|---|
Corporate Auditor | Munehiko Hirano |
Outside Corporate Auditor (part-time) | Keinosuke Ono |
Outside Corporate Auditor (part-time) | Kentaro Watanabe |
Executive officers
Senior Managing Executive Officer Management of Operation Division, And Management of Medical and Health Business Development Office |
Tetsuo Akiyama |
---|---|
Senior Managing Executive Officer Management of Noven Pharmaceuticals,Inc. |
Naruhito Higo |
Senior Executive Officer Management of Volleyball Business Development |
Akira Kayashima |
Senior Executive Officer Management of Licensing, And Management of R&D Division, And Head of MN Business Development Office |
Katsuhiko Akiyama |
Executive Officer Head of R&D Division |
Takaaki Terahara |
Executive Officer Management of External Affairs |
Hidenao Minami |
Executive Officer Head of Sales & Marketing Division, OTC |
Masaya Okuno |
Executive Officer Head of Sales & Marketing Division, RX |
Mitsutoshi Tsuruta |
Executive Officer Head of Production Division |
Taro Ozaki |
Executive Officer General Manager of General Affairs Department(Kyushu), BU Division |
Sakae Yano |
Executive Officer General Manager of APEA Sales Headquarters, International Division, And General Manager of East Asia Division, And Singapore Branch Manager, And Manila Branch Manager, And Taipei Branch Office |
Katsuhiro Sato |
Executive Officer Head of BU Division |
Yasuyuki MASUYA |
Executive Officer General Manager of Human Resources Division |
Kazunori Ito |
Executive Officer Head of International Division |
Taro Hiramatsu |
Executive Officer General Manager of Corporate Strategy Planning And Business Development |
Yuichi Isobe |
Executive Officer General Manager of International Sales Promotion Department, International Division |
Koji Moriwaki |
Management Advisory Board
Management decisions are made based on discussions by the Management Advisory Board, comprising the main Directors, Executive Officers, etc. as needed, whereas particularly important agendas are deliberated and decided by the Board of Directors.
Skill matrix
Name | Corporate management |
Sales/ Marketing |
Global/ Business |
Production/ R&D |
IT/Digital Transformation (DX) |
HR management/ development |
Sustainability /ESG |
Legal affairs/ Compliance/ Risk management |
Finance/ Accounting |
|
---|---|---|---|---|---|---|---|---|---|---|
Directors | Kazuhide Nakatomi |
● | ● | ● | ● | |||||
Kosuke Sugiyama |
● | ● | ● | ● | ||||||
Kyu Saito |
● | ● | ● | |||||||
Nobuo Tsutsumi |
● | ● | ● | |||||||
Shinichi Murayama |
● | ● | ● | |||||||
Koji Takiyama |
● | ● | ● | ● | ||||||
Yuichiro Anzai |
● | ● | ● | ● | ||||||
Tetsugo Matsuo |
● | ● | ||||||||
Tamako Watanabe |
● | ● | ● | |||||||
Corporate Auditors | Nobuyuki Nakatomi |
● | ||||||||
Munehiko Hirano |
● | |||||||||
Keinosuke Ono |
● | ● | ● | ● | ||||||
Kentaro Watanabe |
● | ● |
Decision Policy on Remuneration, etc.
of Individual Directors
Hisamitsu Pharmaceutical's Board of Directors established the following policy for determining the content of remuneration, etc. of individual directors at its meeting held on February 18, 2021.The Company's Basic Policy for the remuneration of Directors shall be that the remuneration system is linked to shareholder returns in order to function as a sufficient incentive to continuously increase corporate value, and when determining the remuneration of individual Directors, the level of remuneration is appropriate considering the responsibilities of each position. Specifically, the remuneration for the Executive Director consists of a basic remuneration as a fixed remuneration, a performance-linked remuneration, and stock remuneration; the Outside Director, who is responsible for the supervisory function, is paid only the basic remuneration in consideration of their duties. The Nomination and Remuneration Committee shall consider the proportion of remuneration for each type of executive Director based on the remuneration levels of companies of similar business and employee sizes to the Company and enterprises in relevant industries. The standard ratio for each type of remuneration, etc. shall be 50%:30%:20% for Basic Remuneration: Performance-linked Remuneration, etc.: Non-monetary remuneration, etc. (when 100% is achieved for the performance indicators).
FY2022 Total amount of remuneration, etc. for Directors and Corporate Auditors
Category | Total Remunerations, etc. (Unit: 1 million Yen) |
Total Remuneration, etc. by Type (Unit: 1 million Yen) | No. of Officers Applicable (Persons) |
||
---|---|---|---|---|---|
Basic remuneration | Performance-linked remuneration, etc. | Non-monetary remuneration, etc. | |||
Directors (Outside Directors) |
209 (27) |
120 (27) |
50 (-) |
38 (-) |
11 (4) |
Corporate Auditor (Outside Corporate Auditors) |
58 (15) |
58 (15) |
- (-) |
- (-) |
4 (2) |
Total (Outside Officers) |
267 (42) |
178 (42) |
50 (-) |
38 (-) |
15 (6) |
- Note 1.As of the end of the current fiscal year, there were nine (9) Directors and four (4) Corporate Auditors.
- 2.Performance-linked remuneration, etc. is cash remuneration reflecting performance indicators to raise awareness of the need to improve performance for each fiscal year, and is paid as a bonus at a certain time each year in an amount calculated based on the degree of annual achievement, etc. of performance targets.
Target performance indicators and their values are set at the time of formulating the plan to be consistent with the Medium-term Management Plan, and shall be reviewed as appropriate in consideration of the Nomination and Remuneration Committee's report in response to changes in the business environment. - 3.Non-monetary remuneration, etc. is allocated in the form of stock acquisition rights as stock option for the purpose of sharing the benefits and risks of stock price fluctuations with shareholders and further motivating them to contribute to the increase in stock price and corporate value.
The details of the stock options and the status of issuance thereof are as described in the “Matters Concerning Stock Acquisition Rights, etc. of the Company,” the item provided electronically.
Effectiveness Assessment of the Board of Directors
Hisamitsu Pharmaceutical regularly verifies whether the Board of Directors as a whole is functioning properly, and based on the assessment results, it is aimed that the entire Board of Directors functions better through an ongoing process of taking appropriate action to correct problems and build on its strengths.
Purpose and Method of
Effectiveness Assessment
For the purpose of conducting a substantive assessment of the Board of Directors' structure and operations in order to enhance effectiveness of the Board, the Board Secretariat conducts a questionnaire, the results of which are reported and discussed at the Board meetings.
Items to be Considered
- ● Structure and operation of the Board of Directors
- ● Management and Business Strategy
- ● Corporate Ethics and Risk Management
- ● Performance monitoring and Remunerations of the management team
- ● Dialog with shareholders and other stakeholders
- ● Appropriate collaboration with stakeholders
Assessment Results
As a result of discussions held by the Board of Directors regarding the questionnaire survey results, we believe that the effectiveness of the Board of Directors is sufficiently ensured. We will continue to enhance discussions on ESG initiatives, risk management, and other issues to ensure and improve functions and effectiveness of the Company's Board of Directors.
Internal Control System
Hisamitsu Pharmaceutical is working to build an organizational structure that enables prompt response to changes in the management environment while enhancing corporate governance based on the Internal Control Regulations (Basic Policy for Internal Control) resolved by the Board of Directors. We are working on the compliance with laws with regard to our activities, spread of corporate ethics, thorough observation of compliance, and improvement of management transparency.
Internal Control Regulations
According to the Companies Act and the Ordinance for Enforcement of the Companies Act, Hisamitsu Pharmaceutical Co., Inc. shall establish a system to ensure the appropriateness of our operations as follows.
- 1. System for retention and management of information on the execution of duties of Directors
- 2. Regulations and other systems for management of risk of loss
- 3. System to ensure that duties of Directors are executed efficiently
- 4. System to ensure that the execution of duties of Directors and employees conforms to laws and regulations and the Articles of Incorporation
- 5. System to ensure the appropriateness of operations in the corporate group composed of the Company, its parent company, and subsidiaries
- 6. Matters related to the employee in the case where a Corporate Auditor has requested that an employee be appointed to assist with the duties of the Auditor
- 7. Matters related to independence from Directors of the employee as stipulated in Paragraph 6 above
- 8. Matters related to ensuring the effectiveness of instructions given by a Corporate Auditor to the employee as stipulated in Paragraph 6 above
- 9. System for reporting to Corporate Auditors
- 10. System to ensure that the person who made the report described in Paragraph 9 above does not receive any disadvantageous treatment on the grounds that the person made the report
- 11. Matters related to prepayment or reimbursement procedures for expenses incurred for the execution of duties of Corporate Auditors and other matters related to the policy for handling of expenses or debts incurred for the execution of such duties
- 12. Other systems to ensure that audits by Corporate Auditors are carried out effectively
Internal Audit
We have established the Internal Auditing Department as an internal audit body with staff members assigned exclusively for internal audits. From the perspectives of the effectiveness, appropriateness, legal compliance, etc. of business operations, the department audits our company and other group companies in terms of the execution of operations. Moreover, the Board of Corporate Auditors and the Internal Auditing Department cooperate in picking out high-risk operations and operational processes and conducting audits for high-risk themes. They also perform audits for our business risk management, employees’ annual paid leave uptake, and stress inspections. They report the results of such audits not only to the Board of Directors and the Board of Corporate Auditors, but also to the department heads and the Director in charge. If necessary, they also provide instructions for improving internal control and offer support and advice for action toward such improvement. Furthermore, they regularly conduct audits of group companies in order to maintain a sound operating environment through support and advice for decision making, accounting, and other important procedures.
Accounting audit
Having signed an audit contract with KPMG AZSA LLC as an accounting auditor, we provide an environment where audits can be conducted from a fair standpoint, such as by providing accurate management information. Our audits have been performed by two designated partners/lead engagement partners, eight certified public accountants, and seven support members. All of the accounting auditors have been working on the company's audits for less than seven years. We have no special interests with KPMG AZSA LLC or the designated limited liability partners/lead engagement partners.