Basic Approach to Corporate Governance

Lion's top priorities for corporate governance are to increase management transparency, strengthen supervisory functions, accelerate decision making and ensure compliance. By strengthening and enhancing its corporate governance systems, Lion aims to increase its corporate value.

*For more information about Lion's approach and initiatives related to corporate governance, please see our Basic Corporate Governance Policy.

Approach to Stakeholders

The mission of a company is to effectively use the assets invested in it to generate positive results. Ultimately, a company belongs to the shareholders that have invested in it. However, in order to meet shareholders' expectations by continuing to perform well and grow invested assets over the medium and long term, Lion believes that it is imperative to work for the benefit of all stakeholders. These include the individual customers that use our products as well as our corporate customers, suppliers and employees.

Management Supervision and Oversight

To further strengthen its corporate governance and enhance the supervision and oversight of management, Lion appoints four external directors and three external corporate auditors* who have no conflicts of interest with the Company or its significant business partners and can maintain a high degree of independence.

*Lion's outside directors and outside corporate auditors are registered with the Tokyo Stock Exchange as independent.

Election and Compensation of Directors and Corporate Auditors

Directors and corporate auditors are elected with the approval of the Annual Meeting of Shareholders. The term of office for directors is one year.

To enhance objectivity and transparency with regard to the compensation of directors and corporate auditors, the Compensation Advisory Committee (established on December 27, 2006) considers and reports on appropriate levels of compensation. Based on these reports, the Board of Directors and Board of Auditors pass resolutions deciding their respective compensation. The Compensation Advisory Committee consists of the external directors and external corporate auditors.

To enhance objectivity and transparency with regard to the director and corporate auditor selection process, the Nomination Advisory Committee was established on June 30, 2016. The Nomination Advisory Committee's members are the external directors, the external corporate auditors and the representative director appointed by the Chairman of the Board of Directors.

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