Independent Perspective for Informed and Inspired Strategies
Superior governance begins with board composition & structure.
Board composition impacts performance. The composition of the committees is critical to oversight.
Future directors should be selected based on strategic business needs. This will require a director search beyond traditional search efforts. Directors must receive training on their responsibilities. Directors must be educated on core financial, governance and ESG concepts that drive corporate value.
Engagement between investors & companies is a
Effective engagement is still a challenge. Both companies and investors stand to benefit from more effective engagement. Companies have the chance to explain their strategies and receive direct feedback. Investors have a chance to express concerns, create long-term sustainable value, and gather critical information.
Investors expect companies and board members to be able to converse on the cost of capital, capital allocation, cross-shareholdings and ESG. Engagement should benefit both companies and investors.
Advancing women in the workforce is critical.
Increasing participation rates of women in the workforce and fostering an environment where women can advance to management and board levels is critical for Japan not only from a labor supply perspective but for real value creation.
Companies that promote and maintain higher levels of gender diversity among their workforce are better positioned to attract and retain talent and generate favorable performance with reduced risk. Investors, recognizing this, are considering diversity data for investments. Role models within the company are important. Investing in female talent is critical.