In today’s briefing:
- Marumae Co Ltd (6264 JP): Q3 FY08/25 flash update
- Does Introducing Incentive into Remuneration of Independent Directors Compromise Their Independence?
Marumae Co Ltd (6264 JP): Q3 FY08/25 flash update
- The company reported sales of JPY7.3bn, operating profit of JPY1.5bn, and net income of JPY940mn, with no YoY data.
- Transitioned to consolidated financial reporting in Q3 FY08/25, adding a Functional Materials segment, primarily operated by KMAC.
- Announced consolidated earnings forecast for FY08/25: sales JPY11.3bn, operating profit JPY1.9bn, and net income JPY1.3bn.
Does Introducing Incentive into Remuneration of Independent Directors Compromise Their Independence?
- Some companies adopt policy of not granting performance-based compensation to outside directors to ensure independence. Given this, outside directors may have little incentive to leverage skills and knowledge in value-creation.
- Most independent board members also serve as board members of other companies, but very few companies have set clear standards for the number of concurrent positions that may be held.
- Although few companies disclose the criteria for the tenure of independent directors, the longest term was 12 years. ISS has set this as the standard in its voting guidelines.
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