Institution Theme Category Industry
  • Wellington Management
  • Governance
  • Strategy & Risk
  • Financial Services
Company Year Market Link
Mitsubishi UFj Financial Group (MUFg) 2019 N/A https://www.wellington.com/uploads/2020/10/4dc06a6392f39bcacb4ae0bcaa9a5aeb/664_11_a4_wmc.pdf

The company disappointed the market early in 2019 by discontinuing its share buyback program, which had been in place for several years…The GIA discusses the company’s share repurchases and related capital allocation decisions at each meeting he attends. The GIA and ESG analyst also collaborated to analyze how the company’s compensation plan incentivizes prudent capital allocation moves and provided feedback about the pay structure.
The GIA and equity portfolio managers raised capital allocation concerns with the board chair, who has been receptive to our feedback. The chairman noted that he had previously brought our feedback to the board, which had followed our advice, bringing about the recent recommencement of a share buyback.
The company reiterated its goal of increasing its payout ratio and maintaining flexibility to conduct buybacks.

Details

  • Proponent
  • Engagement
  • Resolution
  • Capital allocation - share repurchases
  • Vote
  • N/A
  • Rationale
  • N/A
  • Details
  • N/A