UK Fund Seeks Removal of Two Executives at Japan’s Wacom

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessUK Fund Seeks Removal of Two Executives at Japan's WacomA UK investment fund is urging shareholders of pen tablet maker Wacom Co. to remove two top executives over the Japanese company’s weak performance and unsuccessful management moves.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.f6rh)v3aqigq9t4d)xlc)etn_media_dl_1.png Bloomberg(Bloomberg) — A UK investment fund is urging shareholders of pen tablet maker Wacom Co. to remove two top executives over the Japanese company’s weak performance and unsuccessful management moves.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountIn its shareholder proposals, Asset Value Investors Ltd. said that management actions have weakened the company’s business operations and share price, and said there was “improper use of corporate resources.”AVI, which is Wacom’s biggest shareholder with a 13.8% stake, is calling on President Nobutaka Ide and Chief Operating Officer Takafumi Nakajima to leave the board, and recommended a candidate for an independent director. That’s the second year in a row that the London-based firm submitted proposals to Wacom management. All five of its proposals last year were voted down.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againWacom said in a statement in response to AVI that the proposals contain “factual errors and speculation” and management is opposed to them.Proposals by activists in Japan will be closely watched by investors to see if the challenges to management will be accepted by shareholders. Institutional investors and activists have already submitted proposals to 33 companies this year more than a month before the peak of general shareholder meetings in late-June, approaching the all-time high 51 companies last year, according to Bloomberg and Sumitomo Mitsui Trust Bank Ltd. data.Wacom’s brand business, which includes pen tablets, returned to an operating profit in the fiscal year ended March 31 after losing money for three straight years as competition from inexpensive overseas products intensified. The company reduced workforce by about 15% to 20% in the year to March 2025. Despite restructuring steps like those, Wacom’s share price is low because of Ide’s mismanagement of the company, AVI said. The fair value of the stock is ¥1,300, the UK firm said. That’s a level it only breached one year in 2013 — the share gained 1.2% to ¥755 on Friday, on a day when the broader Tokyo market fell slightly. AVI cited as an example of improper use of corporate resources the establishment by Ide of a nonprofit organization in 2021 to support artists and designers. Wacom donated ¥280 million ($1.8 million) to the organization, and Ide’s daughter has often appeared in and directed annual events co-hosted with Wacom, AVI said.Wacom’s COO Nakajima also leads RE-X Expansion Inc., an IT system construction and environmental energy consulting firm. Wacom’s purchase of the company for ¥1.7 billion in March 2026 was “irrational,” considering that the firm had few synergies with Wacom’s core business and it had operating losses for two straight years, AVI said.Wacom countered in its statement that there’s nothing inappropriate about the nonprofit organization in view of the fact that a majority of its board of directors aren’t Wacom executives or employees, and that care is taken to ensure that Ide’s family don’t receive excessive profits when they take part in the organization’s events.The Japanese company also said its acquisition of RE-X Expansion was reasonable and justified as it would contribute to increasing corporate value.(Updates with closing share price in seventh paragraph.)This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. 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