Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

There Is Concern that Meeting Formal Criteria Is Being Prioritized Here as Well

The Stage of Maintaining Appearance by Ensuring Attendance of Independent Directors Has Ended

The Root Cause Is Often a Lack of Understanding of the Underlying Premise

Verifying the Background and Skills of Independent Directors Is More Important than Ever

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Changes to laws and regulations may lead to more companies having majority independent directors, which could result in more companies transitioning to Company with US-style three-committee structures.</li>
<li>There're concerns about whether outside directors could effectively fulfill roles if more companies have majority of outside directors. In reality, this likely depends on the case-by-case circumstances of each company.</li>
<li>Rather than compromising the quality of outside directors just to meet formal requirements, companies would be better off abandoning those requirements and moving from Prime Market to Standard Market.</li>
</ul>


Changes to laws and regulations may lead to more companies having majority independent directors, which could result in more companies transitioning to Company with US-style three-committee structures.
There're concerns about whether outside directors could effectively fulfill roles if more companies have majority of outside directors. In reality, this likely depends on the case-by-case circumstances of each company.
Rather than compromising the quality of outside directors just to meet formal requirements, companies would be better off abandoning those requirements and moving from Prime Market to Standard Market.


A Crossroads: Should a Company Strive to Meet Formal Criteria, or Move to Standard Market Instead?

TSE Tokyo Price Index TOPIX

A Crossroads: Should a Company Strive to Meet Formal Criteria, or Move to Standard Market Instead?