Shareholders in Japan are becoming bolder as they hold protest votes against chief executives, presidents, and other company directors, according to The Wall Street Journal.
The taboo of confronting corporate leadership is slowly weakening as shareholders push to upend norms. The yearlong push is focused on improving profitability and corporate governance and to encourage more involvement from investors. The changing custom has given stockholders more power in directing and influencing the direction of companies. The movement hasn’t led directly to the ousting of any leaders.
Seth Fischer, founder and chief investment officer of Oasis Management Company, said, “For far too long, investors in Japanese companies would say, ‘If only the company would…’”
Fischer’s firm has been pushing for change in the companies that they are invested in. His firm met with senior management and wrote letters to be more closely involved in the direction of the company.
“Our general policy is that we will always try to work with management first,” Mr. Fischer said. “In this case, we were not making progress initially, but as things continued privately, and we were on the verge of announcing a public campaign with proxies, the company went forward with our proposals.”