PEGASUS President Reelection Support Falls to 77.04% as ESG Fund Sets Five Plan Criteria
The fund treats the sharp drop in shareholder support as an early indicator of concern over management responsibility and capital policy, and it is now forcing the board to answer specific numerical and deadline-based questions before the October plan.
Reporting from 1 source: ASCII.jp.
ESG investment fund Be Brave sent PEGASUS a notice on July 29 setting five evaluation criteria for the October medium-term plan. Support for President Masami's reelection fell from 95.79% in 2025 to 77.04% in 2026, with opposing votes rising about 7.2 times. The fund demands capital restructuring, profit improvement, and clear management accountability.
The ESG fund Be Brave sent PEGASUS a formal notice on July 29, laying out five criteria it will use to judge the next medium-term management plan due in October. The notice follows a shareholder meeting where support for President Masami's board reelection fell from 95.79% in 2025 to 77.04% in 2026, while opposing votes grew from 4,807 to 34,549, roughly 7.2 times the prior year.
The fund argues that PEGASUS's core sewing machine business holds real value, but that the board's capital allocation and execution have failed to convert it into adequate profit. It points to the 2024 plan's targets of 300 billion yen in sales, 3.2 billion yen in operating profit, and 8.6% ROE, versus actual results of 21.657 billion yen, 946 million yen, and 1.0% ROE.
The fund wants the board to respond in writing within 10 business days of the plan's release and to hold discussions with independent outside directors.
- Gradual capital restructuring: Aim for an equity ratio around 50% by the final year of the plan
- Prioritize share buybacks: If PBR stays below 0.8, continue buybacks and cancellation unless reinvestment opportunities exceed capital costs
- Disclose capital cost basis: Show the calculation basis and annual bridge to 9% ROE
- Link KPI misses to compensation: Reflect unmet KPIs in executive pay, nominations, and board composition
- Abolish takeover defense policy: End the large-scale purchase response policy early or do not renew it
Synthesized by Yomimono from the 1 cited source below, including Japanese-language reporting where cited, then editorially reviewed before publishing.