The 2017 Japan Board Index provides an analysis of the boards of companies listed on the Nikkei 225 and TOPIX 100 indexes, insight into the issues boards are facing today and comparative data from other countries.
Highlights from the report include:
- 100% of companies in the Nikkei 225 and TOPIX 100 have appointed outside directors, and the same percentage of companies appointed independent outside directors in our last two publications. In these groups, it can be said that the election of outside directors, in particular independent outside directors, has become common practice.
The total number of outside directors is 757 for Nikkei 225 companies and 384 for TOPIX 100 companies, both of which have been increasing over the last few years. The proportion of independent outside directors to outside directors is 95% for Nikkei 225 companies and 98% for TOPIX 100 companies, and the presence of independent outside directors without other interests is also increasing.
99.6% of Nikkei 225 companies and 99.0% of TOPIX 100 companies have two or more independent external directors, and nearly all companies have achieved the percentage required by Japanese governance codes.
The number of companies that appointed foreign directors has continued to increase — that figure is 16% for Nikkei 225 companies and 27% at TOPIX 100 companies. The proportion of foreign directors is 2.9% for Nikkei 225 companies and 4.8% for TOPIX 100 companies, well below the figures found in France (37%), England (32.3%) and Germany (31%). However, that percentage is only 7.3% in the United States.
- 44.9% of Nikkei 225 companies and 59% of TOPIX 100 companies have appointed female directors. Although these figures are steadily increasing every year, they are much lower than France, Germany, the United States and the UK, which all exceed 98%. The percentage of female directors at the board level is 4.9% at 225 Nikkei and 6.5% at TOPIX 100 companies. The above four countries boast more than 20% female membership.
Nikkei 225 companies and TOPIX 100 organizations have outside background directors, about 50% of whom are from business companies. More than 75% of them have served as president, chairman or CEO.
To view the 2017 Japan Board Index in Japanese, click here.