Today’s Business Japanese is “Company with nominating committee etc.”
This word can be heard recently.
So far, all of the directors are elected from company’s employees. However, all of the directors worked under the supervision of president and chairman previously. Therefore, it is difficult for them to make objections against them even they make wrong decisions.
This is not the ideal style of management obviously.
Thus, idea to differentiate management from execution was introduced in Japan and some companies started to committee which nominate board of directors. And the more than half of the “Nominating committee” members has to be occupied by Outside Directors.
But, the ratio who introduced “Nominating committee” is still less than 10% in Japan.
Japan is still on the half way.
