Daily BriefsESG

Daily Brief ESG: Election of Foreign Board Directors Is More Critical than % of Female Board Members and more

In today’s briefing:

  • Election of Foreign Board Directors Is More Critical than % of Female Board Members


Election of Foreign Board Directors Is More Critical than % of Female Board Members

By Aki Matsumoto

  • The gradual increase in the proportion of independent directors is partly due to the growing shift from companies with audit committees to companies with audit and supervisory committees.
  • Companies with audit committees tend to have more outside directors by design, yet they can delegate operational matters to inside directors. Consequently, companies don’t strongly resist having more outside directors.
  • As more companies expand businesses globally, the number of foreign directors hasn’t increased significantly. The reason for this lack of growth is the absence of specific targets set by regulators.

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