In today’s briefing:
- Can Drastic Governance Reform Be Postponed While Performance Expands?
Can Drastic Governance Reform Be Postponed While Performance Expands?
- The number of independent directors has increased but hasn’t reached a majority, the President chairs the Board of Directors, and the company hasn’t moved to Company with US type-3-committees structure.
- Stock options were granted to directors and employees in 2017, which may have motivated them to fraudulently book sales. The company may have had corporate culture of low compliance awareness.
- Foreign shareholders own 50.1%, compared to the founding members’ combined shareholding of 8.6%. It’s unlikely the current lukewarm governance reforms will be forgiven if earnings slow or further scandals occur.
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