This month METRICAL shows how the disclosure about ex-CEO advisors has progressed from a year ago. As shown the table below, in October 2018, 829 companies on METRICAL’s research universe disclosed the number of ex-CEOs (ex- Representative Directors) who retained positions as “advisor” in the company after stepping down as CEO. Of these companies that voluntarily disclosed, 474 companies had ex-CEO advisors. A year later in October 2019, a total of 894 companies disclosed the number of ex-CEOs who retained such advisory positions seat in the company after stepping down from the top management position. Of these 894 companies, 503 companies had ex-CEO advisors in October 2019.
During the approximate past year, 65 more companies disclosed the information about ex-CEO advisors as of October 2019, while the number of companies in the universe decreased 10 for the same period. The % of the companies that submitted the information inched up 3% from 47% to 50%. (Note that disclosure is voluntary.) At the moment, the other half of the companies in the universe haven’t disclosed any data yet. It is also notable that the data includes only ex-CEO advisors but other ex-executive directors than CEO. Also, the data shows interesting changes. The maximum number of ex-CEO advisors decreased from 13 to 11 for the same period but the % of companies that employ former ex-CEO decreased from 43% to 36%. In conclusion, the disclosure information about the existence of ex-CEO advisors and their number hasn’t improved much over the past year. The following table shows the companies that had a large number (3 or more) of ex-CEO advisors as of October 2019.
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Aki Matsumoto, CFA