The Tokyo Stock Exchange reorganised its markets on 4 April 2022, replacing the First Section, Second Section, Mothers and JASDAQ with three segments: Prime, for large companies aimed at global institutional investors; Standard; and Growth. Most former First Section companies chose Prime, and it now has around 1,600 listed companies.
To stay listed on Prime a company needs, among other criteria, a tradable share market capitalisation of at least 10 billion yen and a tradable share ratio of at least 35%. Many companies initially stayed under transitional relief; that ended for assessments from 1 March 2025, and those still short of the criteria now face a grace period before delisting or a move down.
Prime status carries higher governance expectations. Under the Corporate Governance Code, Prime companies should have at least one-third independent outside directors, and a majority where appropriate. From April 2025 Prime companies must publish earnings releases and timely disclosures in English at the same time as Japanese, with a one-year deferral for some. Following the government's 2023 policy, the exchange also asks Prime companies to work towards women making up 30% of officers by 2030; a Keidanren survey found 18.4% in July 2025.
What it means for a foreign employer
- Prime companies are competing for the same senior talent. Governance, English disclosure and board diversity targets have created demand for bilingual investor relations, legal, finance and HR leaders, and for women executives in particular.
- Independent director demand is high. Prime companies' need for outside directors pulls experienced executives, including former gaishi country heads, into board roles. Your Japan head may be approached.
- Prime status is a candidate's benchmark. A candidate leaving a Prime company is giving up a recognised brand. A gaishi offer has to explain its own stability and scale.
- Use the disclosure to map talent. Prime companies publish detailed governance and human capital data in the yuho and on EDINET, which makes their leadership teams easy to research.
Sources
- Tokyo Stock Exchange, market restructuring effective 4 April 2022; continued listing criteria for the Prime Market; expiry of transitional measures (March 2025).
- Corporate Governance Code (2021 revision), Principle 4-8.
- Tokyo Stock Exchange, listing rules on English disclosure for the Prime Market, effective April 2025.
- Keidanren survey on women officers, July 2025.