RNS Number : 6063W
Mitsubishi Electric Corporation
23 December 2021
 

 

 

 

FOR IMMEDIATE RELEASE

No. 3474

 



Media Inquiries


Takeyoshi Komatsu


Public Relations Division


Mitsubishi Electric Corporation


Tel: +81-3-3218-2346


prd.gnews@nk.MitsubishiElectric.co.jp


www.MitsubishiElectric.com/news/

 

Mitsubishi Electric Announces Disciplinary Actions against

Directors & Officers in Connection with Improper Quality Control Practices

 

TOKYO, December 23, 2021 - Mitsubishi Electric Corporation (TOKYO: 6503) announces today receipt of the report on managerial responsibility of Directors and Executive Officers by the Governance Review Committee (Chair: Toshiaki Yamaguchi, Yamaguchi Toshiaki Law Office), which was established as a Board-commissioned body on October 20, 2021, to assess whether there was room for improvement in the Company's overall internal control system and governance, in response to the series of improper quality control practices.

The Company has taken the content of this report very seriously and the Board of Directors and the Compensation Committee held today have resolved the disciplinary actions to be taken against the relevant directors and officers, as detailed below.

The Governance Review Committee will aim to provide a summary of issues identified and recommendations for improvement by March 2022. The Board will take these recommendations on board and work to strengthen its internal control system and governance.

Disciplinary actions to be taken against directors and officers relating to further improper quality control practices which may come to light going forward, including those facts discovered in the Investigative Report (Second Report)*, shall be examined by the Governance Review Committee, and considered by the Company based thereon.

* Update on the Results of the Investigation into Improper Quality Control Practices (Second Report) released on December 23, 2021

https://www.MitsubishiElectric.com/news/2021/1223-b.html

 

1.   Managerial responsibility

The managerial responsibility is as stated in "Report by the Governance Review Committee (First Report)."

https://www.MitsubishiElectric.com/news/2021/1223-c.html



 

2.   Disciplinary actions against directors & officers

Incumbent directors and officers shall be subject to a reduction in compensation from January 2022, and retired directors and officers shall be requested to voluntarily return their pay, as detailed below.

Current title

Name

Details of actions

Notes

Senior Advisor

Masaki Sakuyama

Request for the voluntary return of pay

(50% of basic monthly compensation × 6 months)

Former President & CEO

Senior Advisor

Takeshi Sugiyama

Request for the voluntary return of pay

(50% of basic monthly compensation × 6 months and a portion of retirement benefits)

Ex-President & CEO

President & CEO

Kei Uruma

Reduction in compensation

(50% of basic monthly compensation × 4 months)

Ex-Group President, Factory Automation Systems

Ex-Group President, Public Utility Systems

Senior Vice President

Yoshikazu Miyata

Reduction in compensation

(30% of basic monthly compensation × 3 months)

Current Group President, Factory Automation Systems

Executive Officer

Hideki Fukushima

Reduction in compensation

(30% of basic monthly compensation × 3 months)

Current Group President, Public Utility Systems

Executive Officer

Atsuhiro Yabu

Reduction in compensation

(20% of basic monthly compensation × 3 months)

Ex-Group President, Corporate Total Productivity Management & Environmental Programs

Senior Advisor

Hiroshi Onishi

Request for the voluntary return of pay

(20% of basic monthly compensation × 3 months)

Former Group President, Corporate Total Productivity Management & Environmental Programs

Director (Member of the Audit Committee)

Masahiko Sagawa

Reduction in compensation

(20% of basic monthly compensation × 3 months)


Senior Advisor

Akihiro Matsuyama

Request for the voluntary return of pay

(20% of basic monthly compensation × 3 months)

Former Director (Member of the Audit Committee)

Current title

Name

Details of actions

Notes

Director

Tadashi Kawagoishi

Reduction in compensation

(10% of basic monthly compensation × 2 months)


Senior Advisor

Nobuyuki Okuma

Request for the voluntary return of pay

(10% of basic monthly compensation × 2 months)

Former Director

Senior Advisor

Shinji Harada

Request for the voluntary return of pay

(10% of basic monthly compensation × 2 months)

Former Director

[Supplementary information]

(1)  Considering the improper quality control practices and other factors, Mr. Sugiyama resigned from President & CEO as of July 28, 2021, and Mr. Sakuyama resigned from Chairman, Member of the Board as of October 1, 2021.

(2)  The basic monthly compensation of incumbent officers and retired officers has been calculated based on the basic monthly compensation for the fiscal year ending March 31, 2022, and at the time of their retirement, respectively.

 

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About Mitsubishi Electric Corporation

With 100 years of experience in providing reliable, high-quality products, Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and building equipment. Mitsubishi Electric enriches society with technology in the spirit of its "Changes for the Better." The company recorded a revenue of 4,191.4 billion yen (U.S.$ 37.8 billion*) in the fiscal year ended March 31, 2021. For more information, please visit www.MitsubishiElectric.com

*U.S. dollar amounts are translated from yen at the rate of \111=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2021

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