In today’s briefing:
- Reducing Cross-Held Shares Is Precisely What Is Needed to Promote Management Change
Reducing Cross-Held Shares Is Precisely What Is Needed to Promote Management Change
- The problem with cross-held shares is that management facing shareholders tends to be neglected if they remain protected by a defensive wall rather than a lower return on capital.
- The start of mandatory disclosure of policy shareholding policies from FY3/2025 will also help reduce policy shareholdings, which are expected to decrease gradually, but may remain as deemed shareholdings.
- To improve capital profitability, profit margins must increase, so restructuring the business portfolio and investing for growth are key. Management changes are required to implement these changes.
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