Shareholder support for the reappointment of SoftBank Group Chief Executive Masayoshi Son has significantly declined to 79.22%, down from 95.93% a year ago. This decrease follows a recommendation by proxy advisor Institutional Shareholder Services (ISS) against his reappointment, as indicated in a stock market filing on Tuesday.
The recommendation from ISS was primarily due to SoftBank’s underperformance in terms of return on equity, which has averaged less than 5% over the past five years. This issue was highlighted by SoftBank in a press release earlier in June. The decline in support for Son reflects growing concerns among shareholders about the tech investment group’s financial performance and strategic direction under his leadership.
In addition to Son, shareholder backing for external director Kenneth Siegel remained notably low at 68.46%, compared to 66.9% the previous year. Siegel, managing partner of the law firm Morrison Foerster in Tokyo, has been involved in several high-profile deals for SoftBank. Despite his significant role in the company’s major transactions, the persistent low support signals shareholder dissatisfaction with the current board’s performance and oversight.
The decrease in support for both Son and Siegel underscores the broader concerns about SoftBank’s governance and financial results. SoftBank has faced numerous challenges in recent years, including volatile investment returns and strategic missteps. The company’s Vision Fund, which has made substantial investments in various tech startups, has experienced mixed success, contributing to the overall skepticism about SoftBank’s investment strategy and management efficacy.
SoftBank’s governance practices have been under scrutiny, and the recent shareholder voting results indicate a call for more accountability and improved performance. The board will need to address these concerns to regain investor confidence and ensure long-term stability and growth.
The reduced support for key figures like Son and Siegel could lead to significant changes in SoftBank’s management and strategic approach. Shareholders are clearly seeking more robust returns and better governance practices from the tech investment giant. The coming months will be crucial for SoftBank as it responds to these challenges and works to align its operations with shareholder expectations.
In summary, the sharp decline in shareholder support for SoftBank’s CEO Masayoshi Son and external director Kenneth Siegel reflects growing dissatisfaction with the company’s financial performance and governance. Moving forward, SoftBank will need to take decisive actions to address these issues and restore confidence among its investors.
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