Navigation

Nomura’s CEO wins vote, survives call for ouster

BloombergTOKYO (Bloomberg) — Nomura Holdings Inc.’s besieged chief executive won a shareholder vote on Monday, surviving a call for his ouster from the board following an information leak.

CEO Koji Nagai was reappointed at an annual shareholder meeting alongside nine other nominees proposed by the company, Japan’s biggest brokerage said in an emailed statement. The vote was held almost a week after Nomura announced several moves to placate investors following the leak and recent losses, including governance changes and a $1.4 billion stock buyback.

But those reforms — particularly tweaks to how it selects its top executives — are also likely to weaken the influence of management over who eventually succeeds Nagai, the bank’s longest-serving CEO in three decades.

By stripping Chairman Nobuyuki Koga of his role as head of the key nomination committee in favor of an external director, Nomura may break from the traditional way that Japanese financial firms choose their leaders when the time comes for Nagai to step down. That could be just what the loss-making brokerage needs to meet its long-term challenges, according to Morningstar Inc. analyst Michael Makdad.

“Rather than Nagai or Koga having a large say in who will be the next CEO, Nomura will try to have a selection process that is as independent as possible,” Makdad said. “It is possible the company would choose a candidate open to a broader range of strategic moves than if it chose a protege of Nagai who might defer to some degree to the opinions of former CEOs.”Speech

Click to play

0:00/-:--

+ -

Generating speech. Please wait...

Become a Premium Member to use this service.

Become a Premium Member to use this service.

Offline error: please try again.