Honda today announced a new corporate management system, subject to approval at the General Shareholders meeting in June, to further enhance the effective management and governance of its expanding global business operations. Under the new management system, Honda is creating the new position of Operating Officer to focus exclusively on business operations "at the spot" to strengthen Honda's competitiveness and uniqueness, while the Board of Directors will focus more on supervising the company's important global business issues and strategies. Through this new system, Honda will accelerate efforts throughout its global operations to exceed customer expectations in each region.
The key changes are as follows:
"Operating Officer" Position:
The Operating Officer is a newly created non-board Executive Officer position. The Operating Officers will have a more autonomous authority and responsibility to execute business strategies in their areas of responsibility. As a non-board Executive Officer, the Operating Officer will be assigned by the Board of Directors for the term of 1 year. After the General Shareholders meeting in June, certain members of the current Board of Directors and new appointees will be assigned to the Operating Officer positions by the Board of Directors.
Board of Directors Organization:
The Board of Directors will primarily consist of Representative Directors (President, Executive Vice President, Senior Managing Director) and Chief Operating Officers for regional and other core business operations, who together are responsible for executing the company's total corporate strategies, as well as business strategies in their specific areas of responsibility, while also supervising global management of the company. To enhance the objective supervision of the management of the company, two outside directors (increased from the current one outside director) will be assigned at the shareholder meeting. Reduced from the current total of 36 members, the new 21- member Board of Directors can more effectively convene, review and make necessary decisions on the important business issues in a timely manner. Further, the Assets and Loan Management Committee, which was established in 2003, and complements the Board of Directors' decision-making for time-sensitive investment issues, will be dissolved after the new Board becomes effective.
Regional Operating Officers:
Since 2001, the Regional Operating Officers and the Functional Operating Officers have been assigned to support the Board of Directors in executing business strategies at regional operations and in major production facilities. Under the new management system, these assignments will be continued under the unified title of the Regional Operating Officer.