The Board Director Training Institute of Japan (BDTI) - Director, governance and compliance training

“Toshiba Faces Investor Call to Seek Alternatives to CVC Bid” (Reuters)

“Investors say a deal of this size would lure other potential suitors. Two sources familiar with the matter said Toshiba has been approached by other suitors in the past. When a change-of-control is likely to occur in the United States, the target is required to seek and achieve the highest price reasonably available from any and all parties, said Nicholas Benes, a corporate governance expert and representative director of the Board Director Training Institute of Japan.

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4/7 “Director Boot Camp” Held by Zoom! Next Course: 2021.07.13!

On April 7th, still in the midst of the pandemic, BDTI held its English Director Boot Camp via teleconference. The day-long intensive course was attended by 10 highly-experienced and highly interactive 4/7participants. The participants heard lectures about corporate governance by Nicholas Benes along with a guest lecture by Andrew Silberman of AMT, and exchanged experiences and opinions. Even during a pandemic, training continued smoothly, with all participants chiming in with insightful comments and questions.

Why Does a Farmer Fertilize, and Rotate his Crops? ~ Why is Director Training is So Essential for ESG, – But Especially in Japan?

Farmers fertilize their plots of land and sequentially rotate the crops they plant on them. They do this to improve soil health, optimize nutrients in the soil, and combat pest and weed pressures. Investors should take a cue, to improve the quality of the “land” from which they grow profits, – in other words, the […]

Kay Group K.K. – The Need for Open and Frank Conversations at Board Level

“We are still way too polite with each other.” A repeated statement when Chief Executives describe their boards in Japan. Why is this a problem for Executives? Why do we, as coaches, hear this statement repeatedly?

The Board’s Responsibilities

Boards are responsible and held accountable for the decisions they are making. Hence, the quality of the decision-making process and the decisions themselves are fundamental to the work of boards, their organizations, and the investors. When board members are too polite with each other, they don’t have so-called healthy debates. Why do these debates improve the quality of decisions? Because they invite board members to share their professional opinions.

METRICAL:CG Stock Performance: February 2021

February stocks edged lower with a sharp decline. CG Top 20 stocks underperformed Topix and JPX400 during the month.

In February, the stock market immediately made up for the plunge at the end of the previous month, with the Nikkei 225 index getting off to a strong start, reaching the 30,000-yen level for the first time in 30 years. However, the stocks edged lower with a sharp decline on the last day of the month, due to a plunge in U.S. stocks, especially technology stocks, on concerns about rising U.S. Treasury yields.
CG Top 20 CG rose 1.61% during the month, while Topix and JPX400 indices gained 3.17% and 2.91%, respectively. Cumulative performance of CG Top 20 Stocks continued to outperform significantly as shown in the chart below.

February 9th “Director Boot Camp” Course Held by Video Conference! Next Course: April 7th, 2021!

On February 9th, still in the midst of the pandemic, BDTI held its English Director Boot Camp via Zoom. The day-long intensive course was attended by 10 highly-experienced and very interactive participants. The participants heard lectures about corporate governance by Nicholas Benes along with a guest lecture by Andrew Silberman of AMT, and exchanged experiences […]

2/9 “Director Boot Camp” Held by Zoom! Next Course: 2021.04.07!

On February 9th, still in the midst of the pandemic, BDTI held its English Director Boot Camp via teleconference. The day-long intensive course was attended by 10 highly-experienced and highly interactive participants. The participants heard lectures about corporate governance by Nicholas Benes along with a guest lecture by Andrew Silberman of AMT, and exchanged experiences and opinions. Even during a pandemic, training continued smoothly, with all participants chiming in with insightful comments and questions.

We are planning to hold the next course via teleconference on Wednesday, April 7th, 2021. Sign up early! Please see a description of our director training course here or click the button below for further information.

METRICAL: CG Stock Performance (Japan): January 2021

January stock prices edged lower after surging in the middle of the month. CG Top 20 stocks underperformed against Topix and JPX400 during the 1-month period

The stock market opened higher in January on the back of the stocks rally at the end of the previous month. After that, the market surged on the expectation of solid corporate profits and the observation of continued global monetary easing, but closed sharply lower due to the increased volatility and sharp decline in the US stocks at the end of the month.
CG Top 20 underperformed against both Topix and JPX400 for the month. CG Top 20 slid 0.89%, while Topix and JPX400 rose 0.29% and 0.49% respectively. The cumulative performance of CG Top 20 keeps significant outperformance as shown in the chart below.

METRICAL:Post-COVID-19 Focuses on Family Companies

The environment surrounding our business is changing significantly in line with changes in social life due to the spread of the new corona virus infection. The biggest challenge for management is to adapt to these changes in the environment with a post-corona scenario in mind. We believe that one of the keys to adapting to these changes in a timely and flexible manner is management leadership. We expect to see a lot of interest in the relatively fast-moving family-owned companies. In the past, METRICAL research has shown that companies owned by founder’s families with 20% or more of their companies performing significantly better than average. We would like to focus again on the latest data. The following two charts show the distribution of ROE (actual for past 3-5 years) and Tobin’s Q between family-owned companies (those with 20% or more ownership) and the universe of 1,743 firms, with both ROE and Tobin’s Q being higher for family companies than for the universe of 1,743 companies’ distribution. It remains to be seen whether the family companies will be able to adapt to these changes at a rapid pace and achieve higher profitability, which will be reflected in their stock performance.

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