LIXIL makes pioneering water and housing products that solve everyday, real-life challenges, making better homes a reality for everyone, everywhere.
Corporate governance is extremely important for securing the sustainable growth of LIXIL Group, and enhancing enterprise value over the long-term.
As outlined in Japan’s Companies Act, LIXIL Group has adopted the corporate governance structure of a Company with Three Committees (Nomination, Audit, and Remuneration). This is the "monitoring system" under which the Board of Directors supervises business execution without engaging in the individual conduct of affairs, separating business execution from supervision.
The Board of Directors is the core of corporate governance, and we need to focus on enhancing the substance of discussion. The Board of Directors currently comprises four independent outside directors with diverse backgrounds, five internal non-executive directors familiar with the business, and three managing directors responsible for the execution of direct management. As the Chairman of the Board, I have responsibilities for developing the agenda and presiding over the board meetings, ensuring that the necessary explanations and information are provided for supervision purposes. I will also facilitate the effective discussion during which different ideas and viewpoints are heard and considered.
Corporate governance needs to continually evolve with the changes and demands of the times. In 2018, Japan's Corporate Governance Code was revised for the first time since its inception. Adhering to these basic principles is of course important, but enhancing the company's earning capacity, and achieving greater enterprise value, is the real measure of success for governance reform. Following a resolution by the Board of Directors, LIXIL Group has adopted a new management structure. I have high expectations for the capabilities of those who are tasked with business execution, and as the Chairman of the Board, I will fully support them to realize transformation.
Chairman of the Board, LIXIL Group