JPMorgan Asset Management (Japan) is pushing for Japanese companies to increase female representation on their boards to at least 30%, according to President Shoichi Okoshi. The firm plans to use this target as a benchmark for voting on board member appointments at shareholder meetings within the next few years.
“Diversity is crucial for effective corporate governance,” Okoshi stated. The company, managing over ¥2 trillion ($13.6 billion) in Japanese stocks as of June, already demands that companies have at least one female board member. This year, it voted against board appointments at firms that didn’t meet this standard, affecting over 30% of its investment targets.
Japan’s government aims for 30% female executive representation on Tokyo Stock Exchange’s Prime section companies by 2030. Okoshi also noted that JPMorgan opposes cross-shareholdings, as they “lower capital efficiency,” and stressed the importance of constructive dialogue with companies to drive value improvement.
He added that the TSE’s recent push for better capital efficiency and stock prices has been a catalyst for corporate governance reforms, which foreign investors hope will lead to higher stock prices over time.
