Daily BriefsESG

Daily Brief ESG: Reducing Policy Shareholdings May Be a Sign of Seriousness to Improve Management and more

In today’s briefing:

  • Reducing Policy Shareholdings May Be a Sign of Seriousness to Improve Management


Reducing Policy Shareholdings May Be a Sign of Seriousness to Improve Management

By Aki Matsumoto

  • Although few shareholder proposals will be passed, companies that receive shareholder proposals and don’t like the attention are likely to seek compromise and come to terms with shareholders before AGM.
  • Companies with low valuations have significantly lower ROE, ROA, market capitalization, and foreign ownership. In order to raise valuations, the first step should be to increase return on capital.
  • Companies with higher valuations can be expected to have begun to steer their board operations in an improved direction. Policy shareholding reductions can be considered as seriousness toward management improvement.

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