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[Rösti]

This may have been buried in the landslide that is NX/Zelda news today, but I think it's quite important to bring up:

Notice Regarding Transition to a Company with Audit and Supervisory Committee
and Introduction of Executive Officer System

Nintendo Co., Ltd. (the “Company”) hereby announces that, at the meeting of the Board of Directors held on April 27, 2016, it resolved to plan to transition to a Company with Audit and Supervisory Committee and introduce an Executive Officer System.
The transition to a Company with Audit and Supervisory Committee is subject to the approval of the 76th Annual General Meeting of Shareholders scheduled to be held on June 29, 2016.

1. Company with Audit and Supervisory Committee

(1) Reason for Transition
By establishing an Audit and Supervisory Committee which consists of a majority of outside directors,
the Company aims to strengthen the audit and supervisory functions of the Board of Directors and
further promote corporate governance.

(2) Time of Transition
The Company plans to transition to a Company with Audit and Supervisory Committee upon
receiving approval for the required amendments to the Articles of Incorporation at the 76th Annual
General Meeting of Shareholders scheduled to be held in June 29, 2016.​

2. Executive Officer System

(1) Reason for Introduction
By separating the management decision-making and supervisory functions from the execution of
operations and accelerating the delegation of authority to execute operations, the Company aims to
clarify the responsibility for the execution of operations and establish a more flexible management
structure which can appropriately and swiftly respond to the rapidly changing business environment.

(2) Outline of System
- Executive Officers will be appointed by the resolution of the Board of Directors.
- A Director may act concurrently as an Executive Officer.
- Executive Officers will hold their office for one year and may be reappointed.

(3) Time of Introduction
The Company plans to introduce the Executive Officer System concurrently with the transition to a
Company with Audit and Supervisory Committee.​

3. Other Information

Please refer to the Consolidated Results for the Years Ended March 31, 2016 released today for the
executive appointment after the transition to a Company with Audit and Supervisory Committee and
introduction of the Executive Officer System.
The content of the amendments to the Articles of Incorporation will be announced as soon as
determined.​

Source: https://www.nintendo.co.jp/ir/pdf/2016/160427_3e.pdf

Some big changes going on at Nintendo it seems. Also, the 76th Annual General Meeting of Shareholders, in case you missed it, is scheduled for June 29.

 

[Mihael Mello Keehl]

Dumb this down and explain... 😨

 

[NoFaceNico]

So... they set up a committee? Maybe I don't get it. But this doesn't sound like a lot of change.

 

[KingBroly]

So...they're going to become more like a business?

I.e. 'we're going to try and make sure Wii U doesn't happen again'

 

[hughesta]

I bet this won't be at E3 either.

 

[PsychBat!]

 

[Rösti]

Dumb this down and explain... 😨

More power to the Board of Directors basically, increased focus on corporate governance.

 

[KingSnake]

Dumb this down and explain... ��

They're adopting the western organizational model for big corporations. They will get a supervisory board for big decisions and a mananagement board for execution with a CEO, a CFO, COO etc.

 

[Mihael Mello Keehl]

More power to the Board of Directors basically, increased focus on corporate governance.

They're adopting the western organizational model for big corporations. They will get a supervisory board for decisions and a mananagement board for execution with a CEO, a CFO, COO etc.

So they gon be firing people when the NX slump eh?

 

[Correctomundo]

So a bunch more suits.

 

[Gamer @ Heart]

No this doesn't mean shake up at NoA you nerds

 

[XenodudeX]

More power to the Board of Directors basically, increased focus on corporate governance.

That...doesn't sound good.

 

[perfectchaos007]

What they should do is give each region's HQ more autonomy to do what they want without Nintendo of Japan breathing down their necks. Maybe the supervisory committee will help with that?

 

[NESpowerhouse]

More power to the Board of Directors basically, increased focus on corporate governance.

Uh oh, this ain't good.

 

[Chindogg]

That...doesn't sound good.

Actually it's not that bad if it helps those development managers focus on making games instead of running the business part of the company.

What they should do is give each region's HQ more autonomy to do what they want without Nintendo of Japan breathing down their necks. Maybe the supervisory committee will help with that?

It could help with that as well.

 

[Flare]

I'm not sure how to react

 

[Alienous]

They should get some advice from their buddies at SEGA on how to implode without outright disappearing.

 

[Eolz]

Wow, that's kind of big.
Not really a fan of this too, hopefully they have some good rules iver this.

 

[KamiCrit]

A "Executive Officer System" you say eh?

Kimishima is changing up the ship! All that banking knowledge being put to use.

 

[KingSnake]

That...doesn't sound good.

Obviously the current structure doesn't work either with all these delays for everything. Might actually become somewhat efficient after these changes.

 

[Milly Osworth]

I bet this won't be at E3 either.

You are wrong. Nintendo will have a live press conference with a few men in suits sitting at a table on stage talking business.

 

[vinnygambini]

I think that's great news, less insulated as well and finally give shareholders slightly more sway in their affairs to boot.

 

[Keyser Soze]

Dumb this down and explain... 😨

If Nintendo was once a magical unicorn, they have just shot it dead, put the meat on a grill, and are using the horn as a sex toy.

 

[Possumowner]

Nintendo is clearly going through a transition currently.I'll guess and say they never want a Wii U event again,and this is there reaction business wise

 

[NoFaceNico]

More power to the Board of Directors basically, increased focus on corporate governance.

I don't think that's what it says. I think you just reworded what was said in paragraph 1(1). You added the term that they're giving "more power" to the board and that's not what it says at all. It only says it's "strengthening" a certain area, and when you read further into how they're going to do it, it seems to weaken it in other areas.

2. Executive Officer System
(1) Reason for Introduction
By separating the management decision-making and supervisory functions from the execution of
operations and accelerating the delegation of authority to execute operations, the Company aims to
clarify the responsibility for the execution of operations and establish a more flexible management
structure which can appropriately and swiftly respond to the rapidly changing business environment.

(2) Outline of System
- Executive Officers will be appointed by the resolution of the Board of Directors.
- A Director may act concurrently as an Executive Officer.
- Executive Officers will hold their office for one year and may be reappointed.

It seems like they're just clarifying something they're already in the process of doing and separating management from execution. So it's just another way of making execution more autonomous. I don't think we can know what effect this will have in practice unless we know how Nintendo uses Directors/Managers/Executive Officers and who falls into each category.

 

[Sylverstone14]

Yep, a metamorphosis.

 

[Jotamide]

I hope this means more autonomy for NoA and NoE.

 

[Terrell]

Sounds like the first baby step towards what people keep crowing at Nintendo to be: less insular.

So c'mon people, get happy.

 

[Frozenprince]

It's no longer one guy in a suit running the show, they'll have a board to run it.

Of course, if said board consists of the same few people that have run it into the ground the last decade in the first place, does it really matter?

 

[Tizoc]

More power to the Board of Directors basically, increased focus on corporate governance.

Refresh my memory but back when microsoft wanted to buy ninty during the 2000s didnt they reject their offer due to something similar?

 

[ReyVGM]

More power to the Board of Directors basically, increased focus on corporate governance.

Uh oh, that sounds to me like what drove Capcom and Konami to the ground. Too many suits not understanding how game development works.

If you start seeing long-time Nintendo employees leaving, then you know what's up.

 

[Gamer @ Heart]

I hope this means more autonomy for NoA and NoE.

It doesn't. THIS IS A JAPANESE COMPANY PEOPLE.

NoA and NoE are regional sales firms that adapt products for their markets. Those products are designed in Japan.

This effects the decision making honchos that all reside in Japan.

 

[Francokid1]

That doesn't sound good.

 

[Rösti]

@NoFaceNico I might have been a bit generous in my wording, but that's how I interpreted it anyway. Supervisory/auditory functions have generally quite a bit in saying. But I see your comments on other changes.

 

[Terrell]

It's no longer one guy in a suit running the show, they'll have a board to run it.

Of course, if said board consists of the same few people that have run it into the ground the last decade in the first place, does it really matter?

It seems to me that this provides more room for differing opinions than the current structure and more powers of governance by the Board overall, and unless we can read the mind of every person Nintendo has at an executive level, it's a little bit insulting to paint them all with the same brush.

There's also the matter of several Directors retiring once approved this June, as well.

 

[Toparaman]

They should get some advice from their buddies at SEGA on how to implode without outright disappearing.

No one should take advice from SEGA.

 

[Succinct Verbosity]

It doesn't sound great, but at this point Nintendo's creative process is really hurting them. Originality can and will exist, but Nintendo couldn't have carried on the same way forever.

 

[Madao]

another nail to the coffin?

the last thing they need is japanese old suits getting more power.

 

[thefro]

https://www.nintendo.co.jp/ir/pdf/2016/160427e.pdf

Last 3 pages of this PDF detail the changes. 4 people on the board leaving and becoming Senior Executive officers. Shuntaro Furukawa is joining the board.

Seems like Reggie & Satoru Shibata will have more power in this system as they will be executive officers.

Shuntaro Furukawa is new on the board (as far as internal Nintendo staff). I believe he worked at Nintendo Europe a few years ago. Naoki Noguchi too on the audit/supervisory committee (current head of HR).

The "Senior Executive Directors" were all previously on the board before and have "retired" from that body.

 

[Chaos17]

Actually it's not that bad if it helps those development managers focus on making games instead of running the business part of the company.

In the best world yeah but usualy when you put businemen and not developpers they will care mre about money that games themselves :x

BUT! I hope you're right.

 

[Rösti]

https://www.nintendo.co.jp/ir/pdf/2016/160427e.pdf

Last 3 pages of this PDF detail the changes

Seems like Reggie & Satoru Shibata will have more power in this system as they will be executive officers.

Thanks for the link, I didn't notice this.

 

[HUELEN10]

https://www.nintendo.co.jp/ir/pdf/2016/160427e.pdf

Last 3 pages of this PDF detail the changes. 4 people on the board leaving and becoming Senior Executive officers. Shuntaro Furukawa is joining the board.

Seems like Reggie & Satoru Shibata will have more power in this system as they will be executive officers.

Shuntaro Furukawa is new on the board (as far as internal Nintendo staff). I believe he worked at Nintendo Europe a few years ago.

The "Senior Executive Directors" were all previously on the board before and have "retired" from that body.

So wait... Reggie could have enough power to become the next Howard Phillips?

THIS IS GOOD

 

[Terrell]

https://www.nintendo.co.jp/ir/pdf/2016/160427e.pdf

Last 3 pages of this PDF detail the changes. 4 people on the board leaving and becoming Senior Executive officers. Shuntaro Furukawa is joining the board.

Seems like Reggie & Satoru Shibata will have more power in this system as they will be executive officers.

And there we have it, one less talking point against Nintendo's executive branch.

 

[Yoshi88]

https://www.nintendo.co.jp/ir/pdf/2016/160427e.pdf

Last 3 pages of this PDF detail the changes. 4 people on the board leaving and becoming Senior Executive officers. Shuntaro Furukawa is joining the board.

Seems like Reggie & Satoru Shibata will have more power in this system as they will be executive officers.

This is very very good news. He showed his competence in handling NoE very smoothly.

 

[Bots are better than you]

More power for Shibata, i'm ok with this, dude is pretty ok doing i think.

 

[Asd202]

Good news for NoA and NoE but IMO it could have negative impact on NoJ. Will have to wait and see.

 

[vinnygambini]

So wait... Reggie could have enough power to become the next Howard Phillips?

THIS IS GOOD

Howard was a board member fyi. Reggie ain't part of the elite club yet.

 

[Madao]

https://www.nintendo.co.jp/ir/pdf/2016/160427e.pdf

Last 3 pages of this PDF detail the changes. 4 people on the board leaving and becoming Senior Executive officers. Shuntaro Furukawa is joining the board.

Seems like Reggie & Satoru Shibata will have more power in this system as they will be executive officers.

Shuntaro Furukawa is new on the board (as far as internal Nintendo staff). I believe he worked at Nintendo Europe a few years ago. Naoki Noguchi too on the audit/supervisory committee (current head of HR).

The "Senior Executive Directors" were all previously on the board before and have "retired" from that body.

can we have Shibata handling NoA in addition to NoE? current NoA is crap.

 

[FZZ]

If Shibata, Reggie, and co do get more power than that is preferred over the current system

However, if its simply throttling power to the original board of directors Nintendo is beyond fucked

 

[RibMan]

Dumb this down and explain... ��

They're changing the structure of power/governance in the company. In other words, they're adopting the western model of "Who leads who" and "Who leads what" and "Who gets the reserved parking space under the young oak tree". Remember that companies in Japan aren't all structured in the way companies in the west are, e.g. when Howard Stringer was 'CEO' of Sony he was still unable to exercise full power until he got rid of (then president) Ryoji Chubachi.

PlayStation recently underwent a restructuring as well. Interesting times ahead in the industry!