As has now become tradition in the Japanese summer maritime calendar, for the third straight year top management at Kawasaki Kisen Kaisha (K Line) have today had to justify their positions.
Institutional Shareholder Services (ISS), a long term opponent of K Line’s top brass, has once again recommended that shareholders vote against the election of Eizo Murakami, its current chairman, and Yukikazu Myochin, the newly installed president, at the company’s annual general meeting due on June 21.
ISS has argued over the last three years that Tokyo-listed K Line has underperformed when it comes to returns on equity.
In a release today, K Line fought back, arguing the shipping company, Japan’s third largest, had been hit by dire markets but was carrying out fundamental structural reforms centered around the dissolving of charter ship contracts, which should see the company make a financial turnaround next year.
“We once again would like to humbly request that you exercise your voting right based, not only on the formality of ISS voting recommendation that is analyzed by guidelines rather than individual analysis of the reality of our Company’s circumstances, but on the stewardship code and full understanding of our incessant efforts and results to improve performance,” K Line stated.