REG - Mitsubishi Elect. - Statement re (Disciplinary Actions)

Mitsubishi ElectricAnnouncement

23/12/2021 07:00

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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
                        (mailto: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
(http://www.mitsubishielectric.com/)  (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
(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
(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                                      Former President & CEO

                                                               (50% of basic monthly compensation × 6 months)
 Senior Advisor                            Takeshi Sugiyama    Request for the voluntary return of pay                                      Ex-President & CEO

                                                               (50% of basic monthly compensation × 6 months and a portion of retirement
                                                               benefits)
 President & CEO                           Kei Uruma           Reduction in compensation                                                    Ex-Group President, Factory Automation Systems

                                                               (50% of basic monthly compensation × 4 months)                               Ex-Group President, Public Utility Systems
 Senior Vice President                     Yoshikazu Miyata    Reduction in compensation                                                    Current Group President, Factory Automation Systems

                                                               (30% of basic monthly compensation × 3 months)
 Executive Officer                         Hideki Fukushima    Reduction in compensation                                                    Current Group President, Public Utility Systems

                                                               (30% of basic monthly compensation × 3 months)
 Executive Officer                         Atsuhiro Yabu       Reduction in compensation                                                    Ex-Group President, Corporate Total Productivity Management &

                                                                            Environmental Programs
                                                               (20% of basic monthly compensation × 3 months)
 Senior Advisor                            Hiroshi Onishi      Request for the voluntary return of pay                                      Former Group President, Corporate Total Productivity Management &

                                                                            Environmental Programs
                                                               (20% of basic monthly compensation × 3 months)
 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                                      Former Director (Member of the Audit Committee)

                                                               (20% of basic monthly compensation × 3 months)
 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                                      Former Director

                                                               (10% of basic monthly compensation × 2 months)
 Senior Advisor                            Shinji Harada       Request for the voluntary return of pay                                      Former Director

                                                               (10% of basic monthly compensation × 2 months)

[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.

 

###

 

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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