Nomura under Fire from Shareholders for Information Leak

June 24, 2019

Tokyo- Nomura Holdings Inc. came under fire from shareholders at a meeting on Monday for a recent scandal involving an information leak, as well as a large annual net loss.

Shareholders questioned the responsibility of the current management over the net loss and the leak of information about a Tokyo Stock Exchange review of its listing criteria. Nomura and its Nomura Securities Co. unit received a business improvement order from the Financial Services Agency for the leak.

At the shareholders' meeting in Tokyo, Nomura saw its proposal to reappoint 10 board members approved, including Koji Nagai, president and group chief executive officer.

"We would like to sincerely apologize for causing trouble and concern to our shareholders," Nagai said at the outset of the meeting that lasted for three hours and 11 minutes. It was attended by 618 shareholders.

"I'm determined to bring earnings back on track as early as possible as my own responsibility," Nagai said.

Nagai took over in 2012 after his predecessor resigned to take responsibility for leaking undisclosed information on a share issue plan, a scandal that led to an administrative punishment.

U.S. proxy advisory firm Institutional Shareholder Services Inc. had suggested Nomura shareholders oppose reappointing Nagai and Chairman Nobuyuki Koga as board members over the recent leak.

In the year ended in March, Nomura swung to a group net loss of 100.4 billion yen, reflecting weakness in its core brokerage operations and impairment losses at a U.S. subsidiary. Jiji Press