Bloomberg (May 10)
Tsuyoshi Maruki, the founder of Tokyo-based Strategic Capital Inc., “stands out like a lone wolf in Japan, where societal intolerance for aggressive shareholder campaigns has spurred a breed of friendly activists.” When persuasion fails, Maruki “turns to techniques that include banding with other investors to oust management and filing lawsuits to overhaul corporate practices in order to boost returns for his 9.7 billion yen ($90 million) fund.” Committed to improving corporate governance in Japan, Maruki is convinced his aggressive stance works.
Tags: Aggressive, Friendly activists, Governance, Investors, Japan, Lawsuits, Management, Maruki, Persuasion, Shareholder, Strategic Capital, Tokyo
Wall Street Journal (March 23)
“A majority of the board has been in place for at least 10 years” at nearly a quarter of the largest companies in America. This is prompting investor concerns. “Long-tenured directors can offer companies institutional memory and deep insight into company operations across a variety of economic and competitive environments…. Yet some investors worry that longtime board members may grow too close to the companies and management teams they are supposed to oversee, and lack the critical eye and fresh ideas that newer directors likely bring.”
Tags: Board, Concerns, Critical eye, Directors, Fresh ideas, Insight, Institutional memory, Investors, Management, Operations, U.S.
New York Times (July 29)
“Japanese women are not staying away from work because they can’t get ahead; only one in 10 working women say they want to be promoted to management because it would be hard to juggle housework with the long working hours associated with management.” This makes Prime Minister Abe’s task more challenging. First, he needs to convince women “that work, in and of itself, is a good thing.”
New York Times (June 27)
Japanese shareholders are “starting to show their teeth.” Shareholders have been unusually vocal at the annual general meetings of major Japanese companies this year. “Shareholder meetings this summer have been marked by a flurry of proposals from investors challenging the management—opposing board appointments, for example, or simply expressing anger at executives.”
Japanese shareholders are “starting to show their teeth.” Shareholders have been unusually vocal at the annual general meetings of major Japanese companies this year. “Shareholder meetings this summer have been marked by a flurry of proposals from investors challenging the management—opposing board appointments, for example, or simply expressing anger at executives.”
Tags: AGMs, Japan, Management, Proposals, Shareholders
Financial Times (February 28, 2012)
European companies have been required to report on a quarterly basis for fiver years. This has “done little but confuse and distract management and investors.” Short-termism encourages management to reject good investments simply because they conflict with quarterly earnings expectations. “Data overload cannot enhance company and shareholder interests. Rather than bombing investors with short-term data, companies should explain their long-term objectives, and how they propose to reach them.”
Tags: Europe, Investors, Long term, Management, Quarterlies, Shareholders, Short term
The Economist (November 5)
“Once the Fukushima nuclear plant is stable, the government should temporarily nationalise its operator.” The Economist believes the government must “act fast to nationalise Tepco, and hold it temporarily in public ownership as it clears out the old management and oversees the clean-up. Then it should reprivatise a thoroughly reformed utility.”
Tags: Clean-up, Fukushima, Government, Management, Tepco
