Kenichi Hirai Outside Director
Message from Member of the Nomination & Remuneration Advisory Committee
As Moriroku does not have a parent company, specific largest shareholders, or financial institutions having considerable influence, we are able to conduct business activities as a completely independent company. While this allows freedom in management, the management team bears a great deal of responsibility for their management decisions toward stakeholders as a Prime-listed company.
We believe that the responsibilities of the Nomination & Remuneration Advisory Committee are to select and develop a strong management team that will lead to medium- to long-term increases in corporate value, as well as to plan and implement measures that will contribute to increasing motivation. Although the committee has also played a major role in selecting new officers, we believe there are still issues to be addressed regarding the involvement of the entire officer-level team in planning and training for successor candidates. Last fiscal year, we continued to conduct interviews with executive officers and above as well as candidates thereof, which we started in FY2023, and we plan to conduct such interviews again this fiscal year. With the executive side’s understanding and appreciation of officers having gradually deepened, we would like to actively consider the appointment of human resources from an objective and company-wide perspective.
Regarding remuneration, we plan to discuss the expansion of incentive remuneration, such as stock-based remuneration, which is transparent and can be a motivator to adopt a risk-taking attitude toward sustainable development. We believe this is also an important strategy for personnel acquisition.
The 14th Mid-Term Management Plan will be a time to build a foundation for achieving our long-term vision, as well as an important time to plant seeds and implement new initiatives. The committee will also support the development of the foundation so that the executive side will be able to exercise strong leadership toward realizing the mid-term plan.
Since last fiscal year, Director Yokote has joined the committee, contributing to the diversification of the composition of the committee. Without being bound by the name “Advisory Committee,” we would like to work with the secretariat on various issues, raise questions extensively, and have active discussions and make proposals. I hope to be of some help to the Company by utilizing my experience of working at multiple companies.