Columbia Senior Professor Hugh Patrick’s Annual Essay on the Japanese Economy

Japan now again seems to be breaking out of the doldrums it has been in since the early 1990s. Even though the daily news makes one wonder, I retain my optimism and faith, based on some six decades of studying Japan and watching it grow and evolve. I have addressed this theme in previous essays, and despite the subsequent ups and downs, I believe it applies today.

ISS’ 2016 Benchmark Policy Consultation – Japan

To ensure its voting policies take into consideration the perspectives of the corporate governance community and the views of its institutional clients, ISS gathers broad input each year from institutional investors, issuers, and other market constituents through a variety of channels and mediums. Following the release last month of its 2016 policy survey results, ISS is now making available for public comment certain proposed voting policies for 2016.

BARRON’s: ” Japan’s Corporate Governance Woes”

…BUT THIS VOTING SEASON has turned into a big disappointment. Despite ISS’ shareholder-rights campaign, the presidents of Japan’s top 200 companies received median voting support of 96.6%—a 0.5 percentage point rise from 2014. Even the president of Toshiba (6502.Japan), which lost a third of its market value from an accounting scandal and write-downs, got a 94% approval rating. Some 76% and 91% of investors voted against dividend hikes and share buybacks, respectively.

CHUBB リスクセミナー : 『今後期待される取締役の責任と役割』 (JACDと共催)

開催日時:2015年12月10日(木)14:00~19:00予定(カクテルパーティー含)

● 会 場:ホテル・ニューオータニ(東京・四ツ谷)
● 参加費:無料

                                                 ―プログラム―

14:00-14:10 ご挨拶
14:10-14:50(40分) 基調講演
『日本企業のコーポレート・ガバナンス』
 スピーカー: 斉藤 惇 KKR Japan Limited 会長

14:50-15:30(40分) セッション1
『世界から見た日本の資本市場』
スピーカー: Jamie Allen アジアコーポレート・ガバナンス協会 事務局長

“Nicholas Benes: ‘Governance a Big Deal’ ” (Interview in The Oriental Economist)

Nicholas Benes is Representative Director of The Board Director Training Institute of Japan, which trains directors as a government-certified “public interest” nonprofit. Since 2010, he has chaired the Growth Strategy Task Force of the American Chamber of Commerce in Japan.

The Japanese government and the Tokyo Stock Exchange have taken a number of steps aimed at improving corporate governance on the assumption that this will not only improve returns for shareholders, but also improve corporate efficiency and growth prospects.

Grand Total of 15 Companies Submitted English Corporate Governance Reports to TSE in Past Year

Only 15  companies have submitted English language Corporate Governance Reports to the TSE in the past 12 months…even though the CG Code asks companies with many foreign investors to consider that.  We need significantly more than 15.   Boys be [more] ambitious!  But recently I was able to convince the TSE to at least make a list of the companies that DO have English reports, so that we can single them out for praise.  You can find the list on a downloadable Excel file on this page.

Bloomberg: “Zero Tolerance? Toshiba Tries Opposite in Accounting Scandal”

– Thirty executives named in accounting scandal won't be fired
– Ousted board members stay on the payroll as advisers

“The rule at GE is one strike and you’re out,” said Nicholas Benes, representative director of the Board Director Training Institute of Japan. “What I’m seeing is something closer to 100 percent tolerance at Toshiba.”

Professors Coffee and Palia: “The Wolf at the Door: The Impact of Hedge Fund Activism on Corporate Governance”

“VI. Conclusion

For better or for worse, two major transitions are now in progress. First, corporate governance is moving from a “board-centric” system toward a “shareholder-centric” system.249 Second, public corporations are increasingly under pressure to incur debt and apply earnings to fund payouts to shareholders, rather than to make long-term investments. Neither transition is wholly the product of hedge fund activism, but that force is accelerating both transitions.