A new crop of leaders that rose through the ranks of corporate Japan in the aftermath of its economic bubble looks set to advance governance reforms that are key to further gains in the stock market.
Almost half of Topix 500 Index companies — from department store group Isetan Mitsukoshi Holdings to human resources technology firm Recruit Holdings — have installed new chief executives since 2021, according to data compiled by Bloomberg. While their average age of 62 has held steady over the past decade, it’s close to peers in the United States, and a world away from the image of an aging Japanese business elite that is too set in its ways to change.
The shift is particularly important now, with investors training the spotlight 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 also matters as Japan emerges from decades of stagnation to be a genuine competitor with China and India for new global investment flows into Asia.