Should Corporate Executives Demonstrate Their Professional Currency as “Be Current”?

Takehiko Ito
Professor, NUCB Business School

How could corporate executives demonstrate their qualifications as directors? When you see the corporate governance page on your company’s website, you can easily find a skills matrix of the board of directors. However, would it be sufficiently convincing for both existing and potential shareholders? Can a simple set of dots truly represent directors’ competencies as appropriate? Is there any credential that demonstrates the eligibility of directors? A curriculum vitae has traditionally served as the credential, but it shows outdated records rather than present competencies. A continuous learning track may serve as credible evidence of professional development in a rapidly evolving environment. When considering how to demonstrate their capabilities as “Not the Past, but the Present: Be Current”, we need to have some credentials that prove their capabilities to pursue the responsibilities of today’s directors. Continuous Learning Track would be the one to demonstrate your professional currency as “Be Current”.

Activist shareholder’s requests have become a major concern for top management in Japan. Some company were too defenseless, and others reveal weaknesses due to inappropriate communication with shareholders. In 2026, Japan Financial Services Agency (JFSA) plans to revise their Corporate Governance Code, following its previous revision in 2021. It plans to stress the engagement with shareholders and enhance the effectiveness of corporate governance. Many listed companies were not serious about their PBR, shareholder returns, etc., although the “Ito Report 2.0” (METI, 2019) called for improvements of their PBR and financial indicators. This also led the significant discussion of the nomination and selection process of board members. The nomination committee and its process are required to be more cautious and transparent. Weak investor confidence, unfortunately, have contributed to an increasing number of delistings through MBOs. The escape from the tough shareholder’s demands might not be the final solution.

The basic expectation for corporate executives is the ability to create future value for every stakeholder. Therefore, the continuous development and its proof as “Be Current” is an initial and fundamental factor to have decent board and strong benches.

Profile

Takehiko Ito
Professor, NUCB Business School
Takehiko Ito pursues corporate governance. leadership. global management area both in academic discipline and in real business as a consultant. prior to NUCB, he was a director of Right Management and Principal of Mercer and supported many transformation of management across the world.
He published three books and leads some private communities/organisations which develop future leaders and communities.  He was a former associate dean and led the accreditation and internationalisation. He holds an MBA in Durham University Business School (UK) and ABD in Osaka University.