Japan Activist Clout Shown in Investors’ Taiyo CEO Rejection

Shareholders’ rejection of another term for Eiji Sato as Taiyo Holdings Co. chief executive officer over the weekend was a rare event highlighting the growing clout of activists in Japan’s stock market.

The Tokyo-based chemicals maker said Monday that as a result of the vote, Executive Vice President Hitoshi Saito replaced Sato as top executive. Sato will stay on as senior executive officer though, a personnel move that a key shareholder said goes against the spirit of the vote to oust him.