Remuneration for the representative director and directors consists of basic remuneration, which is a fixed basic monthly fee for executing their roles and duties, a bonus linked to performance during the fiscal year, and stock compensationtype stock options as incentives to promote improvements in medium- to long-term business performances and corporate value. The same applies to remuneration for executive officers, who are vice presidents or above.
Outside directors only receive basic remuneration.

The Company maintains a voluntary four-person Nomination and Remuneration Committee comprising the president, one director, and two independent outside directors.
This Committee verifies the appropriateness of the remuneration system for directors and executive officers who are vice presidents or above, including ideas on calculating basic remunerations and bonuses and the criteria for granting stock compensationtype stock options.
Remunerations are all in line with the remuneration structure, whose basic calculation approaches were resolved at meetings of the Board of Directors and are verified by the Nomination and Remuneration Committee.
The total of basic remuneration and stock compensationtype stock options for directors must be less than the maximum total remuneration approved at general meetings of shareholders. Bonuses, however, are determined when proposals for them are approved at ordinary general meetings of shareholders.

In principle, director and Audit & Supervisory Board member candidates, vice presidents, and higher-ranking executive officers are elected from among those who are deemed capable of fulfilling the duties fairly and appropriately, have a high level of insight, and fulfill the following requirements, regardless of their gender, nationality, ages, and other individual attributes.
<Representative director and director>
Having a true understanding of the corporate philosophy and code of conduct of the Company, as well as a broad familiarity with the Company's businesses and operations, both of which are gained through the experience of serving as an executive officer, for example, and the ability to make effective decisions from a higher perspective, looking at multiple businesses and headquarters functions
<Independent outside director>
Having a high level of expertise and extensive experience in fields such as business management, risk management, law, and economics, in addition to meeting the independence criteria that are separately determined by the Board of Directors
<Audit & Supervisory Board member>
Having a high level of expertise and extensive experience in fields such as business management, finance, accounting, and internal control. At least one outside Audit & Supervisory Board member shall fulfill the independence criteria that are separately determined by the Board of Directors.
<Vice president or higher-ranked executive officer>
Having been highly evaluated in terms of performance, ability, and personality in managerial assessment, having sufficient knowledge, experience, and judgment to bear the responsibility for execution in specific fields, and truly understanding the corporate philosophy and code of conduct of the Company.

The Company maintains a voluntary four-person Nomination and Remuneration Committee comprising the president, one director, and two independent outside directors.
To nominate director or Audit & Supervisory Board member candidates and appoint vice presidents (including successors and candidates for president and representative director), the president and representative director first nominates candidates from among those fulfilling requirements. The nomination is submitted at a meeting of the Board of Directors after the Nomination and Remuneration Committee confirms that it is fair and appropriate.
The Audit & Supervisory Board discusses and consents to nominees before deliberations by the Board of Directors.

Directors and Audit & Supervisory Board members can ask the Nomination and Remuneration Committee for deliberations at any time to decide whether the dismissal of a representative director, executive director, or executive officer who is a vice president or above (collectively, "management team executives") is necessary in the event of illegal, unfair, or treasonous behavior among such individuals, if they have failed to fulfill their roles, or for other reasons that make such people unsuited to retain their posts as management team executives.
All results of Nomination and Remuneration Committee deliberations shall be submitted to the Board of Directors, regardless of the outcome of Board of Directors' deliberations on the necessity of dismissal. The management team executives subject to deliberations cannot join in discussions.