The influx of new CEOs in Japan is causing a shift in generational mindsets, A new crop of leaders who have risen through the ranks of Japanese business in the wake of the economic bubble appear set to promote governance reforms crucial to further gains in the stock market.
Nearly half of the Topix 500 Index companies – from department store group Isetan Mitsukoshi Holdings to HR technology company Recruit Holdings – have appointed new CEOs since 2021, data compiled by Bloomberg shows. While their average age of 62 has remained stable over the past decade, it is close to that in the United States, and far from the image of an aging Japanese business elite too determined to change.
The shift is particularly important now as investors focus on corporate governance reforms as they weigh the sustainability of Japan’s stock market rally, which has sputtered since the 225-issue Nikkei average hit a record high earlier this year. It is also important as Japan emerges from decades of stagnation and becomes a real competitor to China and India when it comes to new global investment flows into Asia.
