Hiromi Yamaji has been reappointed as Chief Executive Officer of Japan Exchange Group Inc (JPX), although shareholder support dropped to its lowest level on record amid ongoing governance concerns and underperformance of the company’s shares.
At the annual general meeting held last week, 82.11% of shareholders voted in favour of Yamaji’s reappointment, according to a regulatory filing released yesterday. While the result still reflects a strong majority, it marks a significant decline from the 94.09% approval recorded in 2022 and the 88.88% support in 2023.
The drop in support follows a challenging year for JPX, during which the company’s share price fell 18.6%, sharply underperforming the broader Topix index, which gained 1.6% over the same period. The decline in investor confidence has been further compounded by governance issues, including a high-profile insider trading case.
In December, Japan’s securities watchdog filed a criminal complaint against a former Tokyo Stock Exchange employee—under JPX’s umbrella—and his father, alleging insider trading. The controversy prompted Institutional Shareholder Services (ISS), a prominent US proxy advisory firm, to recommend voting against Yamaji’s reappointment, citing governance failings and the need for accountability.
Despite these setbacks, Yamaji will continue to lead JPX, tasked with restoring investor trust and addressing governance standards as scrutiny intensifies from both domestic and international stakeholders.
-Bloomberg
