Japan Companies Need Clearer Strategy

Hideyuki Sano covers the inaugural investor survey from Kekst CNC and SquareWell Partners. According to the survey, global investors in Japanese companies said they want more clarity into the strategic vision of management, according to the survey.

Investors also said they wanted more access to company leadership and outside directors as well as greater transparency in succession plans, showed the survey of investors from North America, Europe and Asia with combined holdings of $22 trillion.

• Only 10% of investors surveyed believe Japanese companies clearly articulate their vision
• Only 10% say they have frequent engagements with outside directors, making it difficult to assess board effectiveness, while 95% of investors say access to top management is important to their investment decisions
• 80% expect succession plans to include external candidates, yet very few companies reveal details of the process or its timeline. This fuels uncertainty and reinforces perceptions of insularity, raising concerns about whether leadership selections consistently reflect merit and future needs