Failure 2: Poor Governance

Mr. Kishimoto Has Held His Role for 15 Years

  • CEO Mr. Kishimoto (76) has served as a Hokuetsu board member for ~24 years and CEO for ~15 years

  • The Company deserves a new CEO to execute a bold plan to secure Hokuetsu’s future

 

During his tenure leading Hokuetsu, Mr. Kishimoto has failed to deliver on almost ALL of his promises over the past decade

Mr. Kishimoto Failed Again this Year to Achieve the Mid-Term Plan

  • Hokuetsu’s results fell significantly short of the targets set in its current mid-term plan

  • These results are unacceptable

  • Hokuetsu’s reappointment of Mr. Kishimoto as CEO demonstrates clear governance failures, considering the Company’s current and past results

During Mr. Kishimoto’s Tenure, An Employee Embezzled Funds in 2015

  • In 2015, an employee of Hokuetsu embezzled funds

  • The Company lost JPY2.4bn on the incident

Mr. Kishimoto Fired All Younger Directors in What Appears to be an Effort to Preserve His Leadership

  • Since Mr. Kishimoto became CEO in 2008, he has fired all the other senior directors, in order to preserve his role and maintain his rule over the company

  • In the upcoming AGM, the Company announced that Mr. Yamamoto, Mr. Kondo and Mr. Otsuka will leave the company

The Board Needs to be Refreshed for Future Growth

  • The average age of directors on Hokuetsu’s board is 67 and only one female director sits on the board

  • Mr. Kishimoto’s leadership must end so the company can make decisions for future growth

  • We believe Mr. Tachibana has sufficient experience in the industry to run the Company