Initiatives to Improve Corporate Value slide image

Initiatives to Improve Corporate Value

G (Corporate Governance): Initiatives for Corporate Governance Evolution Our initiatives to improve the effectiveness of the Board of Directors' operations Outside directors' meetings ✓ Outside directors conducted meetings on evaluation of the Board of Directors. Actively discussed to further improve the effectiveness of the Board of Directors. ✓ Held study sessions (on market-related topics) and interaction meetings* with the attendance of outside directors from RB and SR Free discussion sessions * A picture taken at the meeting ✓ Utilize input from outside directors into such key activities as strategies in a timely manner ✓ In FY'22, held free-wheeling discussions on an ongoing basis to address such subjects as the identification and organization of issues associated with various business strategies toward the formulation of the new MMP Onsite tours ✓ Facilitate understanding of the Resona Group's business operations ✓ Hosted a joint tour of the Osaka Head Office in Dec. 2022, with attendees including outside directors from KMFG Remuneration for directors and executive officers Compensation system for executive officers Position-based Compensation Annual incentive Medium to long-term incentives Non-monetary compensation Monetary compensation (shares) Fixed compensation Performance-based compensation Annual incentive Annually examine the status of specific key indices in terms of consistency with MMP targets Corporate performance Net income attributable to owners of parent Fee income ratio Cost income ratio Individual achievements Evaluate the status of initiatives aimed at helping realize SDGs Evaluate the status of medium-to long-term initiatives and the degree of accomplishment of annual Succession Plan (introduced in Jun. '07) Our mechanism for ensuring the succession of roles and responsibilities to be borne by executive officers The scope of the plan covers various candidates for HD, KMFG and group banks, ranging from those who are presidents to those who are new candidates for executive officers ■Candidates are classified by job rank and systematically undergo selection and training programs Selection process • Advice from external consultants • Nominating Committee members attend each program →Secure a structure for transparent and fair selection C Training process Nurture individuals who embody Resona's distinctive strength Ideal traits of executive officer candidates CET1 ratio targets Medium-to long-term incentives Enhance linkage with shareholder value Encourage efforts employing medium- to long-term perspectives to improve corporate value "Matrix-based Evaluation" based on two indices Relative TSR (Relative to peers in the banking industry) Consolidated ROE (Based on shareholders' equity) "Board Benefit Trust" Utilize a trust scheme Grant shares ✓ Enhance linkage with performance Resona Holdings, Inc. 60 60
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