Key points

  • “The ratio of female executives to 30% or more by 2030” is not a legal quota. Since October 2023, it has been positioned as a desired item in the TSE Corporate Code of Conduct.
  • In 2025, women held 17.7% of officer positions at Prime Market companies, while 2.5% of companies had no female officers.
  • The problem is not just in the final selection of director candidates. The ratio of women is 24.4% for assistant manager or equivalent positions, 15.9% for section manager equivalent positions, and 9.8% for general manager positions, which is lower in higher positions, and there is a need to increase the pool of potential executive candidates over the medium to long term.

Positioning of the 30% target

The government has set the following goals for companies listed on the prime market in its “Basic Policy on Gender Equality and Empowerment of Women 2023.”

  • Appoint at least one female director by 2025.
  • By 2030, aim to increase the ratio of female executives to 30% or more.
  • Recommend the development of an action plan to achieve the goal.

On October 10, 2023, the TSE incorporated these as "desired matters" in the corporate code of conduct of the Securities Listing Regulations. Therefore, 30% is neither a legally mandated quota nor a value that would result in immediate delisting if it is not reached. However, it is publicized as expected behavior in the prime market, and investors use it as a standard when evaluating board composition and candidate development.

Care must also be taken in the definition of "officer." In addition to directors, auditors, and executive officers, the government's tally may include certain executive officers and others that each company has included in its targets. When disclosing your company's goals, you must specify who is included in the numerator and denominator, or you will not be able to compare them with other companies.

Current location in 2025

indicators Current situation 2030 goals
Ratio of female executives in prime market listed companies 17.7%(2025) 30% or more
Prime company with no female executives 2.5% (2025) Establish the appointment of one or more people
Ratio of female executives in all listed companies 14.0% (2025) 20%
Listed company that formulates goals and action plans for female executives 5.9% (2025) 30%

The number of companies without any female officers has fallen considerably. The next challenge is not to just appoint one person, but to change the overall composition of the board of directors and bring it closer to 30%.

For example, if the board of directors is 10 people, there will be 3 women, and if the board is 12 people, 4 women will make up 30% or more. Even in companies where the term of office is one year and candidates are elected every year, it takes time to search for candidates, prepare candidates, and make adjustments both within and outside the company. Counting backwards from the annual general meeting of shareholders in 2030, a multi-year election plan will need to be fleshed out from 2026 to 2028.

The real issue is the depth of the candidate pool.

Candidates for executive positions do not suddenly appear. In companies that emphasize internal promotion, opportunities to gain managerial experience create a population of executive candidates, such as general managers, executive officers, business managers, overseas office managers, and CFO candidates.

In private-sector companies in 2024, women held 24.4% of assistant manager positions, 15.9% of section manager positions and 9.8% of department manager positions. Representation falls at higher levels. Trying to reach 30% quickly through internal candidates alone may concentrate outside director and committee responsibilities among a small number of people.

This issue cannot be solved by simply increasing the number of employees. The distribution of experience is important, including who should be given responsibility for profits, who should be given overseas experience, who should be entrusted with M&A and business restructuring, and who should be allowed to participate in management meetings.

Connecting board diversity and internal human resources strategy

The 2026 revised Corporate Governance Code considers diversity to include not only gender, but also internationality, background (including mid-career recruitment), age, cultural background, etc. Additionally, due to the revision of the Cabinet Office Disclosure Ordinance in February 2026, human capital disclosure has been expanded in annual securities reports, including human resources strategies related to corporate strategies on a consolidated basis, policies for determining employee salaries, etc., and increases and decreases in average salaries.

For this reason, rather than treating the ratio of female executives as an independent numerical target, it is more persuasive to present it as a single flow.

  1. Define the knowledge and experience of the board of directors necessary for the company's strategy.
  2. Identify the experience gaps on your current board using the skills matrix.
  3. Provide necessary experience to female candidates for managerial positions and executive officers within the company.
  4. If there are insufficient candidates within the company, systematically search for candidates from outside the company.
  5. Disclose the composition of the Board of Directors and the progress of candidate training every year.

Candidates are not chosen solely because they are women. The company broadly searches for candidates with the skills necessary for the company's strategy, and in the process of searching and developing them, it expands access to traditionally overlooked female talent.

Items to include in your action plan

Item Examples of disclosure and operation
Current location Ratio of female executives, ratio of female managers, number of people in each position, definitions
goal Not only the ratio of executives in 2030, but also interim targets for 2027 and 2028
Board of Directors re-election plan Relationship with expiration of term, retirement schedule, and appropriate size of the board of directors
Developing internal candidates Experience in business responsibility, overseas, finance, digital, M&A, etc.
Search for external candidates Utilize candidate databases, search companies, and human resources from other industries
Environmental maintenance Long working hours, transfers, childcare/nursing care, reappointment, flexible work system
director How many times a year and which indicators do the nominating committee and board of directors check?

Particularly important are intermediate goals. If we just say “30% in 2030”, we can postpone it until 2029. It is necessary to discuss the list of director candidates for 2027 and 2028 and how each candidate will compensate for the lack of experience.

Three common mistakes

1. Make numbers with only outside directors

Appointing outside directors is important, but unless internal executives change, the diversity of management personnel will not progress. Review the composition of internal directors, executive officers and business managers as well.

2. Treat manager ratio and executive ratio as the same thing

The ratio of officers is an indicator of the composition of the board of directors, and the ratio of managers is an indicator of human resource development. The time axis and population are different. Disclose both and explain how they are connected.

3. End with “There is no suitable person”

If there are no suitable people, analyze why they are not available. Identify areas where the number of candidates is decreasing in recruitment, assignment, evaluation, transfer, balancing work with childcare, and promotion to important positions, and take corrective measures.

Implications that IR personnel should be aware of

  1. Specify the denominator of the 30% target and target position. If the definitions differ between government statistics and in-house disclosures, explain the differences.
  2. Create a re-election table counting backwards from 2030. Indicates the number of candidates required for each year, reflecting director terms of office, resignations, increases and decreases in number of directors.
  3. Treat the ratio of female managers as a leading indicator for executive candidates. In particular, track the number and experience of general managers, executive officers, and business managers.
  4. Disclose the role of the nominating committee. Specify how you will be involved in candidate search, training plans, external searches, and progress confirmation.
  5. Explain the distribution of experience, not just numbers. Who you entrust with important business, overseas, finance, digital, and M&A shows the true state of the candidate pool.

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