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Corporate Governance System | Initiatives for Sustainable Growth

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ITOHAM YONEKYU HOLDINGS, as a company with an Audit and Supervisory Committee, strengthens board oversight and delegates authority to ensure transparent governance and swift decision-making. We also establish advisory committees and internal control systems to drive sustainable corporate value.
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Corporate Governance System

On June 25, 2025, following approval at the 9th Annual General Meeting of Shareholders, the Company transitioned from a Company with a Board of Auditors to a Company with an Audit and Supervisory Committee. By including Audit and Supervisory Committee members in the Board of Directors, we strengthened the Board’s supervisory function and enhanced management transparency and objectivity. To further separate execution from oversight, we significantly delegated authority for business execution from the Board of Directors to executive directors. This enables faster decision-making and execution, while the Board focuses on medium- to long-term management strategies, sustainability, and other critical issues. Through these initiatives, we aim to reinforce our corporate governance structure and achieve sustainable growth and enhanced corporate value for the Group.

    2024
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    Board of Directors

    The Board consists of 11 members: five executive directors and six Audit and Supervisory Committee members, including four independent outside directors. In addition to monthly regular meetings, the Board convenes extraordinary meetings as needed to decide on key management policies, strategies, and important matters, and to supervise execution.
    For matters that do not require Board approval, authority is delegated to the Group Executive Committee and executive officers under the Delegation of Authority Rules to ensure swift decision-making.

    Board of Directors Effectiveness Evaluation (FY2024)(JPN text only)

    Governance and Nomination Advisory Committee

    This committee ensures transparency in the nomination of directors and executive officers and strengthens governance systems and operations to support sustainable growth and long-term corporate value.
    It consists of seven members, including four independent outside directors, and advises the Board on the following:

    1.Appointment and dismissal of directors and executive officers
    2.Establishment, amendment, or abolition of basic policies, rules, and procedures for nominations
    3.Oversight of succession planning and managerial personnel development
    4.Operational plans for the Board of Directors
    5.Development of the corporate governance system

    Compensation Advisory Committee

    This committee enhances independence and objectivity in decisions on director compensation, strengthens governance, and ensures accountability.
    It consists of five members, including three independent outside directors, and advises the Board on:

    1.Compensation systems for directors and executive officers (basic, performance-based, share-based)
    2. Performance-linked indicators, targets, and ranges
    3. Compensation levels compared with competitors

    Sustainability Committee

    This committee promotes Group-wide sustainability initiatives to achieve a sustainable society and long-term growth. It consists of six members, including one independent outside director and two executive officers, and advises the Board on:

    1.Basic policies, strategies, and plans for sustainability, and monitoring progress
    2. Identification of materiality (key issues)
    3. Setting and monitoring KPIs for materiality

    Compliance Committee

    Following the transition to a Company with an Audit and Supervisory Committee, this committee was elevated from a reporting body to an advisory body to strengthen compliance. It regularly reviews risk management related to food safety, compliance, laws, litigation, and disputes, and evaluates operations independently to reinforce internal controls and corporate value. It advises the Board on:

    1.Policies and plans for compliance and priority initiatives
    2. Status and effectiveness of risk management for food safety, compliance, and legal issues
    3. Instructions for improvement on significant deficiencies identified

    Group Executive Committee

    Established as a deliberative and discussion body second to the Board of Directors.
    The committee consists of directors (excluding outside directors), auditors, and others designated by the committee chairperson. The committee meets twice monthly and on an as-needed basis.
    The committee decides, reports, and discusses managerial strategies and other important matters.

    Audit and Supervisory Commitee

    The committee consists of six members: two full-time and four part-time independent outside directors. Based on audit policies and plans, it conducts audits through attendance at key meetings, interviews with executive directors and officers, and on-site visits to Group locations.

    Accounting Auditor

    The Company has an audit agreement with KPMG AZSA LLC for audits under the Companies Act and the Financial Instruments and Exchange Act. The Audit and Supervisory Committee and the accounting auditor hold regular meetings and discussions to strengthen collaboration, including:

    • Annual reports on Companies Act audits / Once a year
    • Annual reports on Financial Instruments and Exchange Act audits / Once a year
    • Interim review reports / Once a year
    • Reports on audit implementation status / Twice a year
    • Explanations of annual audit plans / Once a year
    • Discussions with Audit and Supervisory Committee members / Once a year
    • Joint meetings with the President / Once a year
    • Three-party audit coordination meetings (Audit and Supervisory Committee, accounting auditor, Audit Department) / Once a year