In today’s briefing:
- Alignment of Management and Shareholder Interests Could Be the Beginning of Happiness
Alignment of Management and Shareholder Interests Could Be the Beginning of Happiness
- TSE suggests presenting management strategies without sticking to the medium-term management plan, but the “medium-term management plan briefing” is the only opportunity to hear management policies from the company.
- The primary reason why companies whose stock prices outperform even though they don’t publish medium-term management plan are founding-family companies is that their interests align with those of their shareholders.
- To align management with shareholders, it was also necessary to require CEOs with low stock ownership to increase the ratio of variable compensation and adopt stock grants in director compensation.
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