TEPCO strives to increase corporate value over the long term by strictly enforcing corporate governance.
The TEPCO Board of Directors is composed of 20 members, including two outside directors (as of March 31, 2010). It is responsible for examining and making key executive decisions, and for supervising the performance of the directors.
The functions of the Board of Directors are complemented by the Board of Managing Directors and cross-organizational in-house committees. Together they drive proper and prompt decision-making processes and ensure efficient corporate management. These supervisory branches of management are separated from executive operations by an executive officer system. Additionally, the remuneration of directors and executive officers is based on a performance-based remuneration system and decided by a remuneration committee composed of learned individuals from outside the company.
Management audits are conducted by an audit team that is more than half composed of outside auditors to strengthen audit functions (4 outside auditors among 7 members, as of March 31, 2010). Internal audits are governed by an independent framework (Internal Audit and Management of Quality & Safety Department, Nuclear Quality Management Department). Furthermore, corporate ethics and nuclear safety and quality assurance departments maintain their transparency by incorporating the views of dedicated committees composed of outside experts.
Management framework (as of March 31, 2010)
TEPCO employs internal controls to ensure proper business operations and credible financial reporting.
The Internal Control Committee develops, operates, evaluates as necessary, and improves TEPCO's internal control system in line with the basic policy of internal controls (policy for development of a system that ensures proper business operations) established by the Board of Directors, and ensures proper business operations by enforcing legal compliance and promoting operational effectiveness and efficiency.
The Committee is also responsible for ensuring the credibility of financial reporting through proper operation and evaluation of the "internal control reporting system for financial reports" that is based on the Financial Instruments and Exchange Act.
With respect to important executive matters of Group companies, Group companies are required to hold preliminary discussions, briefings, and exchange of views with TEPCO, so that TEPCO can keep track of their business performance and share management issues and solutions with them. To strengthen the internal control system of the entire Group, TEPCO also supports and encourages Group companies to establish and operate an independent system to govern proper business operations.
© Tokyo Electric Power Company Holdings, Inc.
