Nikko AM makes monumental management manoeuvres
07 June 2013
News, Asia, Global, Japan
By Asia Asset Management
Nikko Asset Management (Nikko AM) is to nominate Takumi Shibata as its candidate to be director and chairman at its annual shareholders’ meeting on June 28. Upon approval, his appointment will take effect on July 1. Charles Beazley will remain president and CEO and continues to be responsible for the day-to-day management of the business.
In this move, Nikko AM will separate the roles of chief executive and chairman in line with common corporate governance practices, with the chairman in charge of governance related matters and the CEO in charge of executing the business strategy and running Nikko AM’s day-to-day business.
Together, Mr. Shibata and Mr. Beazley will form a new leadership team for Nikko AM.
With the recent retirement of two senior executives, Mr. Beazley was performing the combined roles of chairman, president and chief executive. The board was pleased to find in Takumi Shibata such an ideal candidate as chairman, strengthening the company’s corporate governance.
Accordingly, the separation of the chairman and CEO roles was a decision taken unanimously by the board of Nikko AM. It reflects the company’s strong commitment to adhere to international best practice of good corporate governance, a guiding principle of the firm’s corporate strategy and an important step for the future of the Nikko AM.
Mr. Shibata has long been a leading figure in the global financial services industry, with extensive experience of both the Japanese and international markets. Together, Mr. Shibata and Mr. Beazley will continue the execution of Nikko AM’s business expansion and position the company en route to its IPO, with the full support of the board and company shareholders.
Mr. Beazley commented: “I strongly believe that international best practice and good corporate governance requires a separation between the positions of chairman and CEO and I informed the board early this year that this was the path we needed to follow. This is especially important for a company that intends to IPO and needs to meet the scrutiny of the international markets.
“Mr. Shibata is one of a handful of Japanese financial service executives who combines a deep understanding of the Japanese market with a vision at the global level. He is well respected across the global financial services industry and will be an essential source of additional strategic knowledge to our board. I have known Mr. Shibata for a number of years and very much look forward to working with him as we move the business forward.”
Mr. Shibata added: “Nikko AM’s growth strategy as a leading pan-Asian asset manager, which has progressed through organic growth and targeted acquisitions in key markets, is remarkable. The best opportunities for growth across different markets and client segments are right here in Asia; the emergent wealth in Asia and the structural resurgence of Japan as an investment opportunity will be key drivers for Nikko AM’s growth. I hope to bring additional insights to Nikko AM’s board and assist its strategic development and growth.”
The new roles will be effective July 1. Mr. Shibata’s appointment as chairman will bring the board composition to nine directors: four executive directors, three non-executive independent directors and two from STB.
Over the past few years, Nikko AM has made significant acquisitions in Singapore, Hong Kong, China, Australia and New Zealand and has added stakes in a number of leading independent Malaysian firms. Most recently, the company also launched a joint venture in India. These deals have provided Nikko AM with a regional footprint across Asia-Pacific and a head start to its business growth outside of Japan.
Mr. Beazley further commented: “Our business strategy is clear, our commitment to it is absolute and our optimism for the company's growth is considerable – Nikko AM remains committed to its growth plans across Asia and continues to look for opportunities in several key markets.”
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