Daily BriefsESG

Daily Brief ESG: As Role of Outside Directors Becomes More Important and more

In today’s briefing:

  • As Role of Outside Directors Becomes More Important, Is Effectiveness of BODs Improving Accordingly?


As Role of Outside Directors Becomes More Important, Is Effectiveness of BODs Improving Accordingly?

By Aki Matsumoto

  • Corporate Governance Code, which makes the appointment of outside directors mandatory, was introduced in the hope of restructuring corporate governance and restoring profitability.
  • We must explore why, as the role of outside directors expands and dependence on them grows, the challenges of profitability and rising stock prices remain far from being resolved.
  • It’s a good idea to have half of directors be independent outside directors. Companies with fewer than that should improve the skills of the entire BOD to increase their effectiveness.

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