Key Facts
• In 2024, 122 companies offered gifts to shareholders, a fivefold increase from five years ago.
• Individual shareholders accounted for 97.8% of total shareholders in FY2023, reaching 74.45 million.
• Companies like Duskin and Daiwa Securities offer prepaid cards and gift cards for voting.
• Activist shareholder proposals hit record highs, while stable shareholders decreased due to cross-shareholding dissolution.
• Online voting platforms, supported by trust banks, provide electronic gifts to encourage participation.
• Companies aim to foster long-term shareholder loyalty by reviving meeting souvenirs.
• Concerns arise over governance risks if shareholder meetings focus on gifts rather than discussions.
• Individual shareholders are seen as potential swing votes in close corporate decisions.
• Mitsubishi UFJ Trust Bank collaborates with Gift Pad to offer digital rewards for online voting.
• Mitsui Sumitomo Trust Bank plans to introduce app-based reward points for voting in October 2024.
Summary
Japanese companies are increasingly incentivizing individual shareholders to participate in general meetings and exercise voting rights. With stable shareholders declining due to cross-shareholding dissolution, individuals now hold significant influence in corporate decisions. In 2024, 122 companies offered gifts, such as prepaid cards and souvenirs, to encourage voting, a fivefold increase from five years ago. Online voting platforms, supported by trust banks, also provide digital rewards. While these efforts aim to foster shareholder loyalty and counter activist investors, concerns about governance risks and reduced meeting engagement persist. Individual shareholders, who now represent 97.8% of total shareholders, are expected to play a pivotal role in shaping corporate outcomes.
