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 Framework

In the semiconductor production equipment industry, where technological innovation is fast and market changes are active, we will further promote Group management that is on the offense globally, as well as grow short-, medium- and long-term earning and continually improve corporate value with a Board of Directors that plays a supervisory role and by establishing a strong execution system based on the form of corporate organization for the company with the Audit & Supervisory Board. In addition, we will strive to meet the expectations of our stakeholders.
In addition to the Board of Directors, whose role is to make major operational decisions, play a supervisory role in the executive management’s execution and support appropriate risk-taking by them. TEL has also established systems that will facilitate growth-oriented governance directed at sustainable growth for TEL, including the following:
・The Nomination Committee and Compensation Committee to ensure fair, effective, and transparent management
・The Corporate Officers Meeting as the highest decision-making body on the executive side
・The Corporate Senior Staff (CSS) as the body that formulates and advances company strategy

Seven out of the 12 Corporate Directors and Audit & Supervisory Board Members, are outside members, consisting of four Independent Directors and three Outside Audit & Supervisory Board Members. Stating their unreserved opinions from an independent perspective, Independent Directors and Independent 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 believes that the current Board of Directors, with Corporate Officers who are well versed in the business also attending, is properly fulfilling the roles of supervising executive management and making important decisions based on engaging in constructive, open-minded debate.
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.

FY2025 Composition of the Committee

• Nomination Committee
  　　Michio Sasaki(Corporate Director (Outside Director))*
  　　Sachiko Ichikawa(Corporate Director (Outside Director))
  　　Yoshikazu Nunokawa(Corporate Director)
• Compensation Committee
  　　Michio Sasaki(Corporate Director (Outside Director))*
  　　Joseph A. Kraft Jr.(Corporate Director (Outside Director))
  　　Yoshikazu Nunokawa(Corporate Director)

Chairman

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 and individual interviews conducted for all members of the Board of Directors, Audit & Supervisory Board and Corporate Officers.
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.