Integrated Report 2020

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Foundation58LINTEC Integrated Report 2020Governance3 Status of Accounting Audits P52 DiagramD Name of audit firmErnst & Young ShinNihon LLC Continuous period for which the independent auditor has performed auditsSince 1981 Selection policy and reason for audit firmEach period, the Audit & Supervisory Committee conducts an evaluation in accordance with the standards for evaluation and selection of the independent auditor. The independent auditor is selected based on a comprehensive assessment of the independent auditor’s independence, internal control system, audit plans, audit methods and results, and the status of execution of audit duties.The Audit & Supervisory Committee may dismiss the indepen-dent auditor in any of the cases stipulated in Article 340, Paragraph 1 of the Companies Act, based on the agreement of all Audit & Supervisory Committee members. In that event, an Audit & Supervisory Committee member selected by the Audit & Supervisory Committee will provide a report of the dismissal and the reason for the dismissal at the first General Meeting of Shareholders convened after the dismissal.In addition, in the event that the Audit & Supervisory Committee, with consideration for the status of the implementation of the inde-pendent auditor’s duties, the Company’s audit system, etc., deter-mines that it is necessary to change the independent auditor, then the Audit & Supervisory Committee may decide the details of a proposal to the General Meeting of Shareholders concerning the dismissal or non-reappointment of the independent auditor. Evaluation of the audit firm by the Audit & Supervisory CommitteeIn accordance with the standards for evaluation and selection of the independent auditor, the Audit & Supervisory Committee will con-duct evaluations from the perspective of the audit firm’s quality control; audit team; audit compensation, etc.; communications with the Audit & Supervisory Committee; relationship with senior execu-tives, etc.; Group audits, and misconduct risk.4 Details of Audit Remuneration, Etc. Remuneration of the independent auditor, etc.(Millions of yen)CategoryFiscal year ended March 31, 2019Fiscal year ended March 31, 2020Remuneration for audit servicesRemuneration for non-audit servicesRemuneration for audit servicesRemuneration for non-audit servicesLINTEC880880Consolidated subsidiaries––––Total880880Note: The non-audit services provided to the Company in the previ-ous fiscal year and the fiscal year under review were officer training. Remuneration to the same network (Ernst & Young) as the independent auditor, etc. (excluding remuneration of the independent auditor, etc.)(Millions of yen)CategoryFiscal year ended March 31, 2019Fiscal year ended March 31, 2020Remuneration for audit servicesRemuneration for non-audit servicesRemuneration for audit servicesRemuneration for non-audit servicesLINTEC————Consolidated subsidiaries26113416Total26113416Note: The non-audit services provided to consolidated subsidiaries in the previous fiscal year and the fiscal year under review were tax-related advisory services, etc. Details of remuneration for other material audit servicesNot applicable Remuneration of Corporate Officers1 Policy Regarding Decisions on Amounts of Director Remuneration Remuneration of directors (excluding outside directors and Audit & Supervisory Committee members)The remuneration of the Company’s directors (excluding outside directors and Audit & Supervisory Committee members) consists of the following.(1) Basic remuneration• Fixed amounts paid based on rank• The total amount paid does not exceed ¥420 million(2) Bonuses• Short-term incentives (remuneration linked to business perfor-mance) paid in amounts adjusted based on consolidated business results, the total amount paid not exceeding ¥150 million(3) Restricted stocks• Long-term incentives to contribute to increasing the Company’s corporate value and share price provided by the allotment of restricted stocks• The total amount paid does not exceed ¥60 millionThe amounts of remuneration are decided by the Board of Directors in accordance with the Company’s internal rules on director remuneration, within totals approved at the 124th Annual General Meeting of Shareholders held on June 21, 2018.The Corporate Governance Committee has been established as an advisory body for the Board of Directors (excluding Audit & Supervisory Committee members) on matters regarding evalua-tions of directors and decisions on remuneration for directors with the aim of improving objectivity and transparency. This body pro-vides advice and makes suggestions. P52 DiagramE Remuneration of outside directors (excluding Audit & Supervisory Committee members)This is decided by the Board of Directors in accordance with the Company’s internal rules on director remuneration and within totals approved at the General Meeting of Shareholders.