Corporate Governance

Tokyo Electron's Basic Principles of Corporate Governance

In view of Tokyo Electron's corporate philosophy that we strive to contribute to the development of a dream-inspiring society through our leading-edge technologies and reliable service and support, Tokyo Electron(TEL) believes improving corporate governance is important for achieving success in global competition, realizing sustainable growth, and increasing corporate value over the mid to long term. To reinforce our corporate governance, TEL will build a structure for utilizing to the maximum the worldwide resources TEL possesses, strengthen our business and technological bases, and put in place a framework that will enable us to establish earning power at a global level.
Moreover, TEL believes that continuing to be a company replete with dreams and vitality will form the foundation that will support the motivation of our employees and the sustainable growth of TEL. TEL has established the Corporate Governance Guidelines that provide a governance framework that will contribute to the achievement of this aspiration.

The Corporate Governance Guidelines

The Corporate Governance Framework

TEL uses the Audit & Supervisory Board System, which consists of a Board of Directors and an Audit & Supervisory Board. Effective governance is achieved based on the supervision of management by the Audit & Supervisory Board.
Based on this organizational structure, TEL has also established systems that will facilitate Growth-Oriented governance directed at sustainable growth for TEL, including the following:

・The Board of Directors, whose role is to make major operational decisions and play a supervisory role in the execution of those
・The Nomination Committee and Compensation Committee to ensure fair, effective, and transparent management
・The Corporate Senior Staff (CSS) as the body that formulates and advances company strategy

Six out of the 17 participants in the Board of Directors, including Audit & Supervisory Board Members, are outside members, consisting of three Independent Directors and three Outside Audit & Supervisory Board Members. Stating their unreserved opinions from an independent perspective, Independent Directors and Outside Audit & Supervisory Board Members guide Board of Directors debates in the proper direction for success in global competition that does not follow the same line of discussion proposed by internal Corporate Directors. TEL regards the active statement of opinions, not only by Independent Directors, but also by Audit & Supervisory Board Members, as the cornerstone that supports the best decisions by the Board of Directors. TEL believes that the current Board of Directors has achieved an appropriate sense of tension and constructive debate from the combination of Executive Directors essential for making operational decisions and the objectivity provided by outside members.
TEL makes decisions the independence of Independent Directors and Independent Audit & Supervisory Board Members based on TEL's criteria for judging independence, "Independence Requirements for Outside Directors and Outside Audit & Supervisory Board Members"; these criteria that were established based on the requirements for Independent Standards set forth by the Tokyo Stock Exchange.

Diagram of the Corporate Governance Framework, Internal Control System and Risk Management System

FY2021 Composition of the Committee

●Nomination Committee
  Yoshikazu Nunokawa(Corporate Director)
  Tatsuya Nagakubo(Corporate Director)
  Kiyoshi Sunohara(Corporate Director)
  Michio Sasaki(Corporate Director (Outside Director))

●Compensation Committee
  Charles Ditmars Lake Ⅱ(Corporate Director (Outside Director))
  Tatsuya Nagakubo(Corporate Director)
  Yoshinobu Mitano(Corporate Director)
  Michio Sasaki(Corporate Director (Outside Director))

Chairman of the Committee

The Corporate Governance Report

Evaluating the effectiveness of the Board of Directors

In accordance with the Tokyo Electron Corporate Governance Guidelines, TEL’s Board of Directors annually performs our own analysis and evaluation, debates the effectiveness of the Board of Directors based on an evaluation survey filled out by each Corporate Director and Audit & Supervisory Board Member.
Additionally, in regard to issues that are recognized as a result of analysis and evaluation, the Board of Directors will endeavor to deepen discussion and make timely improvements.