Prime Minster Sanae Takaichi blamed companies for focusing too much on shareholders and not enough on raising wages in comments that might unsettle investors who¡¯ve helped drive Tokyo stocks to record highs this year.
¡°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.
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