2024: Record Shareholder Proposals in Asia
- TOKYO (April 29, 2025) – Shareholder activism is on the rise globally, with proposals and demands reaching unprecedented levels in 2024.
- investment bank indicates that shareholder activist proposals worldwide totaled 258 in 2024, a slight increase of six compared to the previous year.
- The Asia-Pacific region is experiencing the moast rapid growth.Shareholder proposals in the region jumped 30% year-over-year in 2024, tripling the levels seen three years prior.
Shareholder Activism surges in Asia, Led by Japan
TOKYO (April 29, 2025) – Shareholder activism is on the rise globally, with proposals and demands reaching unprecedented levels in 2024. A significant portion of this activity is concentrated in Asia, particularly in Japan, according to a recent report in the Nikkei business daily.
Global Trends in Shareholder Activism
A survey by a U.S. investment bank indicates that shareholder activist proposals worldwide totaled 258 in 2024, a slight increase of six compared to the previous year. This marks a record high for the second consecutive year and represents a 50% increase over the past three years.
The Asia-Pacific region is experiencing the moast rapid growth.Shareholder proposals in the region jumped 30% year-over-year in 2024, tripling the levels seen three years prior.
Japan’s Leading Role
Japan stands out with a record 37 shareholder proposals in 2024 alone. In South Korea, the number of shareholder proposals ranged from 10 to 14. Experts suggest this surge reflects growing concerns about the lack of consideration for minority shareholders within South Korea’s chaebol management structures.
While North America still accounts for the largest share of global shareholder proposals at 50%, this is a decline from 60% two years ago and 85% a decade ago. Europe saw 62 shareholder proposals, slightly more than Asia.
Drivers of Shareholder Activism in Japan
The rise in shareholder activism in Japan is attributed to corporate governance reforms initiated in 2013 and pressure from the Tokyo stock Exchange (TSE) to increase stock prices, beginning in 2023.
The TSE is urging companies to prioritize long-term growth strategies, such as investments in facilities and the divestiture of underperforming businesses, rather than simply buying back treasury stocks or increasing dividends.There is also a push for capital allocation that maximizes investment returns. In 2024, 51% of shareholder activism in japan was related to capital allocation, considerably higher than the five-year average of 32%.
Defensive Measures and Privatization
Some companies view shareholder activism as undue “pressure” and are taking steps to protect thier management rights through privatization.
According to Deloitte Tomatsu,buy-out funds made the most investments in the Asia-Pacific region over the past three years in 2024. Toyota Automatic Power (6201 JP) is reportedly considering going private. This move is linked to the resolution of the parent company’s simultaneous listing and the purchase of treasury stocks from the Gumi Investment Fund in 2024. Analysts believe this reflects concerns that a change in the company’s management could impact Toyota Motors.
Expert Perspective
According to Kikuchi, chief stock strategist at Mizuho Securities, the increase in shareholder proposals creates tension for company management, even for those not directly targeted. He added that reasonable proposals from minority shareholders are now more likely to gain support from overseas investors.
Shareholder Activism: A Deep Dive into the Global Surge, with a Focus on Asia and Japan
what is Shareholder Activism?
Shareholder activism refers to the strategies shareholders use to influence a corporation’s decisions.this can involve proposing changes to company policies, management practices, or even the company’s overall direction.
is Shareholder Activism Increasing Globally?
Yes, shareholder activism is on the rise globally. According to a recent report in the nikkei business daily,proposals and demands from shareholders reached unprecedented levels in 2024.
Where is Shareholder Activism Most Prominent?
A notable portion of this activity is concentrated in Asia, particularly in Japan.While North America still accounts for the largest share of global shareholder proposals, Asia-Pacific is experiencing the most rapid growth.
What are the Global Trends in Shareholder Activism?
A survey by a U.S. investment bank indicates that shareholder activist proposals worldwide totaled 258 in 2024, a slight increase of six compared to the previous year. This marks a record high for the second consecutive year and represents a 50% increase over the past three years. The Asia-Pacific region is experiencing the most rapid growth. Shareholder proposals in the region jumped 30% year-over-year in 2024, tripling the levels seen three years prior.
How does Asia Compare to Other Regions?
While North america still accounts for the largest share of global shareholder proposals, declining from 60% two years ago and 85% a decade ago. Europe saw 62 shareholder proposals, slightly more than Asia.
Why is Japan a Leader in Shareholder Activism?
Japan is a key player, with a record 37 shareholder proposals in 2024 alone. The surge is attributed to corporate governance reforms initiated in 2013 and pressure from the Tokyo Stock Exchange (TSE).
What are the Key Drivers of Shareholder Activism in Japan?
The TSE is urging companies to:
- Prioritize long-term growth strategies.
- Make investments in facilities.
- Divest underperforming businesses.
- Capital allocation that maximizes investment returns.
What percentage of shareholder activism in Japan was related to capital allocation in 2024?
In 2024, 51% of shareholder activism in Japan was related to capital allocation, considerably higher than the five-year average of 32%.
How Does South Korea Fit Into the Picture?
In South Korea, the number of shareholder proposals ranged from 10 to 14. Experts suggest this surge reflects concerns about the lack of consideration for minority shareholders within South Korea’s chaebol management structures.
How do Companies Respond to Shareholder Activism?
Some companies view shareholder activism as “pressure” and are taking steps to protect their management rights through privatization.
what is Privatization and How does it Relate to Shareholder Activism?
privatization is when a company becomes privately held. This can be a defensive measure against shareholder activism.
Are there Examples of Companies Considering Privatization?
According to Deloitte Tomatsu, buy-out funds made the most investments in the Asia-Pacific region over the past three years in 2024. toyota Automatic Power (6201 JP) is reportedly considering going private. This move is linked to the resolution of the parent company’s simultaneous listing and the purchase of treasury stocks from the Gumi Investment Fund in 2024. Analysts believe this reflects concerns that a change in the company’s management could impact Toyota Motors.
What’s the expert perspective on Shareholder Activism?
According to Kikuchi, chief stock strategist at Mizuho securities, the increase in shareholder proposals creates tension for company management, even for those not directly targeted. He added that reasonable proposals from minority shareholders are now more likely to gain support from overseas investors.
Key Statistics at a Glance
Here’s a fast summary of key statistics from 2024:
| Region | Shareholder Proposals * |
|---|---|
| Global Total | 258 |
| Asia-Pacific | Significant growth (30% YoY) |
| Japan | 37 |
| North America | 50% of global proposals |
| Europe | 62 |