Image: Reuters Berita 24 English - Despite internal opposition, two influential proxy advisers have both recommended voting for the confirm...
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| Image: Reuters |
Berita 24 English - Despite internal opposition, two influential proxy advisers have both recommended voting for the confirmation of all Toshiba Corp director nominees, including two from dissident shareholders.
According to reports released Tuesday, proxy advisers Institutional Shareholder Services Inc (ISS) and Glass Lewis backed all 13 candidates, including those from Elliott Management and Farallon Capital Management.
External director Mariko Watahiki has objected to the recommendations, claiming that adding two shareholder representatives would bias the board toward activist investors.
At Toshiba's annual meeting on June 28, shareholders will vote, and many non-Japanese institutional investors often follow proxy advisers' recommendations.
In its analysis, ISS stated that Watahiki's objections "are not believed to rise to a level that would justify voting against" Farallon and Elliott executives. Toshiba is owned by the two funds to the tune of 10%.
The board is majority independent, according to the statement, and the presence of linked outsiders on the board "cannot be seen as negative."
The shareholder nominees were rated favourably by Glass Lewis. They are "anticipated to signify a negotiated turning point for Toshiba" as the business accepts external, shareholder-centric perspectives while examining strategic alternatives, according to the corporation.
It also stated that a lack of board-level consensus "is not intrinsically harmful on its own" and would indicate a healthy interchange of ideas.
