Japan Inc. Needs to Pay for Performance
Fixing executive compensation would help fix the economy.
Let’s be a bit less equal.
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Almost three decades ago, the Texan oilman T. Boone Pickens attempted to charge into a Japanese boardroom. He had accumulated around one-third of the company – worth almost $1 billion at the time – yet a seat at the table eluded him. There was nothing to force the directors to accept him.
Japan Inc. has come a long way since Pickens took on Koito Manufacturing Co., a supplier of parts to Toyota Motor Corp. Backed by Prime Minister Shinzo Abe’s economic revival plan and corporate governance reforms, activist investors are circling. Tokyo buzzes with investors and advisers looking to capitalize as they open doors to once insular boardrooms. Yet the opportunity can still be as difficult to grasp as it was for Pickens.