America’s biggest pension fund and three British asset management companies will work in lockstep on corporate governance reform in Japan by voting.
They will coordinate to request increasing outside directors from the at least two now recommended by the Tokyo Stock Exchange to at least one-third of the board. Companies that do not will be punished with votes against their choices for directors in principle….
The partners are the California Public Employees’ Retirement System, Legal & General Investment Management, Standard Life Investments and BMO Global Asset Management. Details of the group’s requests will be announced as soon as early next week.
The quartet collectively holds about 4 trillion yen ($36.3 billion) in Japanese stocks….Increasing outside directors will be a high hurdle for some companies. Just 40% of the Nikkei Stock Average’s 225 components have met the goal of at least one-third. But with collective engagement, the movement will likely gain momentum.