Japanese businesses are focusing too much on shareholders, Prime Minister Sanae Takaichi said Friday, in comments that flicked at her frustration with firms for not using more capital to raise wages.
"I think there has been a trend of too much focus on shareholders. I will revise the corporate governance code to encourage companies to appropriately distribute resources not just to shareholders but to employees,” she said in response to questions in parliament that raised the issue of how to increase the labor share of income.
While underscoring Takaichi’s push for companies to keep raising wages at a time when inflation continues to eat into household incomes, the comments also appear to signal a deviation from the policies touted by her mentor Shinzo Abe. As prime minister, Abe promoted a new corporate governance code designed to encourage companies to engage more seriously with investors and respect minority shareholders’ rights.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.