Since the time when little attention was paid to corporate governance, HORIBA has pledged to improve its corporate governance by implementing the following policies, which focus on the responsibility to the company’s owners based on the corporate motto, “Open and Fair.”

Election of External Directors Corporate Auditors

In order to avoid management with introverted logic, HORIBA has always appointed directors and corporate auditors from outside the company. This practice started with the company’s origin in 1953 and is followed through to the present day.

Implementation of Dividend Policy that Emphasizes Shareholder Returns

HORIBA was the first listed Japanese company to start paying shareholder dividends based on a payout ratio in 1974. Since 2013, we have changed from dividend policy targeting at 30% of nonconsolidated net income to the total shareholder return, combined with the amount of dividend payments and share buybacks, targeting at 30% of consolidated net income.

Open General Meetings of Shareholders

Since its initial listing in 1972, HORIBA has encouraged all shareholders to attend the General Shareholders Meeting. Shareholder meetings are held on Saturdays to facilitate public attendance.

Adoption of a Corporate Officer System

HORIBA has decreased the number of directors to prevent the Board of Directors from becoming inflexible and avoiding lively discussion. In addition, we introduced a corporate officer system in 1998.