Pioneer 2008 Annual Report Download - page 20

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18 PIONEER CORPORATION
Corporate Governance
Pioneer recognizes that strengthening corporate governance is of vital
importance to increasing corporate value.
Under the Company Law of Japan, Pioneer has elected to structure
its corporate governance system as a company with a board of corpo-
rate auditors, which has a statutory duty to monitor, review and report
on the administration of the affairs as well as the accounts of Pioneer.
The Board of Directors, which includes several outside directors,
decides on fundamental issues such as management policies and super-
vises the execution of business activities, while the Board of Corporate
Auditors audits the directors’ performance of their duties.
Based on this institutional structure, Pioneer has adopted an
executive officer system to expedite the execution of business activi-
ties and clarify the responsibilities for each business. Meanwhile,
aiming to enhance the transparency of decision making, Pioneer has
established a Group Executive Committee and voluntary advisory
committees to the Board of Directors.
Establishment of Group Executive
Committee
The Group Executive Committee, which was
formed to reinforce decision making, comprises
directors and executive officers chosen by the
Board of Directors and holds regular monthly
meetings. The Group Executive Committee,
under the supervision of the Board of Directors,
thoroughly discusses issues such as priorities for
advancing business activities, investment proj-
ects, group realignment, and group-wide man-
agement strategies, as well as medium- and
long-term policies, and either approves these
issues or in cases where the Board of Directors is
stipulated to have decision-making authority
reports on these issues to the Board of Directors.
Establishment of Three Advisory
Committees
Pioneer has voluntarily established the following
three advisory committees to the Board of
Directors, each chaired by an outside director:
the Nominating Committee, the Compensation
Committee, and the Special Committee. Their
goals are to enhance the supervision of the exe-
cution of business activities by outside directors,
improve management transparency and strengthen
corporate governance. These committees report
on the results of their deliberations to the Board
of Directors, and make related recommendations.
The Board of Directors discusses these reports
and their recommendations, giving due consider-
ation to their content.
Nominating Committee
This committee discusses issues such as the
election and dismissal of directors as well as the
election, dismissal, promotion and demotion of
executive officers.
Compensation Committee
This committee discusses issues such as basic
policies and systems for remuneration and
other benefits for directors and executive