Independent Leading Corporate Governance Research

Metrical Inc

METRICAL INC. is an independent leading Corporate Governance research firm in Japan where Corporate Governance is increasingly recognized as an important element on corporate management in these days. Thus, CG research and solutions would become an essential component of global capital markets and play important to contribute to transparency of the markets and maximize shareholders’ value in Japan. 

METRICAL INC. provides Corporate Governance research and analysis including rating services, and  also offers investment research and IR services with solutions and customized profound research on CG and IR issues.

The Problem Is that Many Managers Know that ROE Is Below Cost of Capital but Are Not Taking Action

Activist Investors Have Been Consistent, but Environment Around Companies Has Changed Significantly

Watch for Changes in Proxy Voting by Domestic Institutional Investors on Shareholder Proposals

Managers Should Consider That "TSE's Request" Has Changed the Rules of the Game

Executive Director, Metrical Inc

Aki Matsumoto

Executive Director

<ul>
<li>Activist investors' proposals were consistently based on increasing shareholder returns. The change in the environment, in which ％ of foreign shareholders increased while cross-held shares decreased, had a major impact.</li>
<li>Regarding the selection of directors, discussion on contents of Skill Matrix should be more active, as it's suspected that top management is selecting candidates who are aligned with their wishes.</li>
<li>The voting standards of domestic institutional investors are iridescent and still dependent on public opinion for each proposal. The change in public opinion has only just begun.</li>
</ul>


Activist investors' proposals were consistently based on increasing shareholder returns. The change in the environment, in which ％ of foreign shareholders increased while cross-held shares decreased, had a major impact.
Regarding the selection of directors, discussion on contents of Skill Matrix should be more active, as it's suspected that top management is selecting candidates who are aligned with their wishes.
The voting standards of domestic institutional investors are iridescent and still dependent on public opinion for each proposal. The change in public opinion has only just begun.


Public Opinion Is Slowly Catching Up, but the Change Has Only Just Begun

TSE Tokyo Price Index TOPIX

Public Opinion Is Slowly Catching Up, but the Change Has Only Just Begun