Pentax 2015 Annual Report Download - page 11

I will contribute to HOYA’s sustained development drawing on my highly
developed “common sense” about management and my capability for asking
questions.
One of the roles of outside directors is to observe and give direction from their
independent perspective as representatives of the shareholders to the executive
officers. When it is judged that top management is acting inappropriately, we are
required to call a halt to that behavior. I think my role as an outside director is to
draw on my “common sense” regarding management that I have gained as a
member of top management elsewhere and perform a checking function in many
capacities making use of the Company’s financial statements, conducting
dialogue with the market, responding in times of crisis, and in other situations.
To perform my outside director roles as observer and provider of direction, I
receive detailed reports from the business divisions containing not only financial
data but also information on the strategy in the background that led to these
financial results. Since the commitment of executive officers to quarterly budgets
is outstanding, we directors also must gain a grasp of the core of problems and endeavor to pose accurate and
sharp questions. At the Board of Directors’ meetings, we conduct in-depth discussions centering around the
allocation of corporate resources. This creates a tense mood, and my feeling is that we are making decisions
speedily.
Another point about HOYA’s corporate governance is its Nomination Committee, Compensation Committee, and
Audit Committee. For example, an important theme of discussion in meetings of the Nomination Committee is the
choice of candidates for director positions, which we outside directors also discuss. Another important topic this
committee discusses is the selection and training of the next generation of managers from a medium- to long-term
perspective. The Audit Committee conducts auditing activities based on themes for the period, and the
Compensation Committee makes judgments on the validity of proposals made by the committee secretariat based
on criteria that clearly link compensation with performance. I believe these corporate governance committees are
functioning effectively.
HOYA’s management is based on the strategy of being a “big fish in a small pond.” Under this strategy, HOYA
shows its strengths in developing niche markets, capturing high market shares and, thereby, maximizing profits.
However, for HOYA to realize sustainable growth, my understanding is that it will be important for HOYA to nurture
the development of markets, or “small ponds,” within the Life Care business segment or attain further growth
through M&A. In the Life Care field, I feel that there is still considerable room for HOYA to contribute to the world.
Messages from the Outside Directors
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