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Tokyo, December 1, 2009 - CSK has been working to reform its business and cost structures with the objective of restructuring its operating foundation to achieve a revitalization of the Group. Initiatives taken to date include: withdrawing completely from the real estate securitization business, bolstering its financial position through a capital increase and other measures; appointing a new senior management team; and concentrating business resources in the IT services business. As part of this reform, CSK announced today that it has decided to introduce a new personnel system and put in place an early retirement program (the "Career Option Program") with the objective of further enhancing its organizational and personnel system.
Since our foundation, we have held as our basic management philosophy that our people are everything. We have decided to introduce and implement the new system and program as measures that enable employees to be evaluated fairly and give them the option of pursuing career plans appropriate for their individual needs. The details are as follows:
1. New performance-based, employee development-focused personnel system
(1) Main purpose of new system
The main objective of the new system is to develop an organizational culture and foster a mindset among employees that enable us to achieve sustainable growth, by each employee proactively embracing change as we seek to accelerate our business strategies on the path to Group revitalization.
(2) Overview of new system
- The new system will rigorously evaluate employees' performance of duties, activities and results and reflect the evaluation results appropriately in the employees' remuneration. In the evaluation, priority will be placed on individual employees' performance, or current value (how they have fulfilled their roles and utilized their abilities). This differs from the evaluation and remuneration systems adopted to date, which have placed priority on the abilities possessed by employees.
- Based on the IT Skills Standards (ITSS),* which is becoming well established in Japan's IT industry, we will formulate our own independent job grade definitions for each job category as well as specialist skill accreditation criteria, which go into further detail on these definitions. These will be the standards for assessing and accrediting specialist skills within the Group.
| *ITSS: | Standards being promoted by the Information-Technology Promotion Agency, Japan that clearly outline and codify the necessary skills for providing IT-related services. |
- The Specialist Skill Accreditation Committee, which will partly consist of external experts, will accredit employees' specialist skills from an objective perspective and after a designated verification period will reflect accredited skills in employees' remuneration.
- Companies adopting new system
CSK SYSTEMS CORPORATION
CSK SYSTEMS NISHINIHON CORPORATION
CSK SYSTEMS CHUBU CORPORATION
CSK-IT MANAGEMENT CORPORATION
CSK ServiceWare Corporation
CSK ADMINISTRATION SERVICE CORPORATION
(CSK HOLDINGS CORPORATION adopted the new system in April 2009. We are currently considering whether to introduce the new system at other Group companies)
- Timing of adoption
From April 2010
2. Career Option Program
(1) Main purpose of new program
The main objective of the new program is to review our business, organization and cost structure, improve organizational efficiency and optimize workforce size, while also providing support for those wishing to pursue new careers as one option for employees in considering their career plans.
(2) Details of program
- Companies adopting new program
CSK HOLDINGS CORPORATION
CSK SYSTEMS CORPORATION
CSK SYSTEMS NISHINIHON CORPORATION
CSK SYSTEMS CHUBU CORPORATION
CSK-IT MANAGEMENT CORPORATION
CSK ServiceWare Corporation
CSK ADMINISTRATION SERVICE CORPORATION
(We are currently considering whether to introduce the new program at other Group companies.)
- Employees eligible for program
In the case of CSK HOLDINGS CORPORATION and CSK ADMINISTRATION SERVICE CORPORATION:
- Employees aged 35 or older as of March 31, 2010
In the case of other companies adopting the program:
- Employees aged 40 or older as of March 31, 2010
- Targeted number of employees availing of the program
Around 440
- Solicitation period
January 12, 2010 - January 29, 2010
- Retirement date
Date approved by the company in the period from January 31, 2010 to March 31, 2010
- Incentives
In addition to the regular retirement benefits, CSK will pay an extraordinary additional retirement benefit that will differ in accordance with the employee's age.
CSK will also provide job-placement assistance for employees availing of the program.
(3) Impact on earnings
The costs of implementing the Career Option Program will be recorded as an extraordinary loss in CSK's financial statements for the fiscal year ending March 31, 2010. The impact on earnings will be announced once the number of employees availing of the program is confirmed.
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