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In a
report issued on Wednesday, ISS recommended a vote against
Sharp's CEO Kozo Takahashi and Chairman Shigeaki Mizushima at
the loss-making firm's annual shareholder meeting on June 23.
ISS said the pair were responsible for Sharp's ROE being below a
five-year average of 5 percent, a condition for the proxy
adviser's support.
Sony also falls short of that target, and ISS advised against
reappointing CEO Kazuo Hirai at the firm's annual investor
meeting, also on June 23. The ISS recommendation comes despite a
nascent recovery at Sony after years of losses that has seen its
shares surge in the past year.
Despite its opposition to Sharp's top leadership, ISS
recommended investors back a $1.9 billion bank-led bailout
announced by the firm last month. The bailout will be Sharp's
second major rescue in three years, after falling deep into the
red as its smartphone display business was battered by
competition from Asian rivals.
As part of the deal, Sharp is proposing placements of preferred
shares and a capital reduction. ISS said it recommended voting
for the measures, saying they were necessary "to keep Sharp's
operations afloat".
(Reporting by Ritsuko Ando; Editing by Kenneth Maxwell)
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