Prime Minister Sanae Takaichi has criticized Japanese companies for overly focusing on shareholders at the expense of wage hikes. In parliamentary questions, she vowed to revise the corporate governance code to encourage better resource allocation to employees. The remarks signal a departure from policies championed by her mentor, Shinzo Abe.
On November 14, 2025, Prime Minister Sanae Takaichi blamed companies in parliament for placing too much emphasis on shareholders and insufficient capital toward raising wages. The comments could unsettle investors who have propelled Tokyo stocks to record highs this year.
"I think there has been a trend of too much focus on shareholders. I will revise the corporate governance code to encourage companies to appropriately distribute resources not just to shareholders but to employees," she said in response to questions on increasing the labor share of income.
The remarks underscore Takaichi's drive for ongoing wage increases as inflation erodes household incomes. However, they also indicate a shift from the policies of her mentor, Shinzo Abe, who as prime minister introduced a corporate governance code to foster serious engagement with investors and respect minority shareholders' rights.
In the context of wages, inflation, and the Japanese economy, these statements may impact investor sentiment.