Shareholders Increasingly Critical of Executive Pay, Scandals
Tokyo, June 27 (Jiji Press)--Shareholders of Japanese companies have increasingly been critical of executive pay and scandals as they push for governance reform and higher returns.
A total of 719 companies listed on the Tokyo Stock Exchange that close books in March, or 31 pct of the total, held shareholder meetings on Thursday, marking the peak day of this year's season for such gatherings.
The number of companies that were given shareholder proposals for meetings in June rose to a record 54, eclipsing the previous high of 42 marked last year, according to Mitsubishi UFJ Trust and Banking Corp., signaling increased pressure on firms from activist investors.
A shareholder of Takeda Pharmaceutical Co. <4502> proposed that the company include a clause in its articles of incorporation that would oblige executives to return pay if it suffered a large loss from past investments or other causes.
While the proposal was voted down, U.S. proxy advisory firm Institutional Shareholder Services Inc. had recommended that Takeda shareholders vote in favor of the proposal.
[Copyright The Jiji Press, Ltd.]