‘Moonlighting’ Directors Are Problem for Company Boards in Japan
- Directors on more than one board may weaken governance: SBI
- Shares of companies with dual-board directors underperform
Japanese companies with directors that sit on multiple boards are facing the equity market’s displeasure as the Tokyo Stock Exchange steps up pressure to improve corporate governance.
The bourse tightened listing guidelines in 2022, demanding that firms in its blue-chip Prime section get at least a third of their board members externally. While most companies have tried to meet this request, they are speeding up the process by taking on members already serving on other boards.