Kathy Matsui, former vice chair of Goldman Sachs Group's Japan division, said the term “womenomics,” which she coined to describe the economic benefits of women's empowerment, is still a work in progress.
“One of the challenges facing Japan is whether it can increase the representation of women in leadership positions,” Matsui said. Although the employment rate of women is increasing, it is still difficult to move from non-regular employment to managerial positions.
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Matsui's comments came as the Japanese government pressured companies listed on the Tokyo Stock Exchange's Prime Market Index to raise the proportion of female directors to 30%. According to the Cabinet Office, as of 2023, women will account for only 13% of the total number of executives at blue-chip listed companies.
Matsui says, “It is the responsibility of managers to develop human resources and create an environment where women can thrive.'' She says there is only so much the government can do to increase the number of women in management positions.
According to data from the Ministry of Health, Labor and Welfare, the number of working women has increased by more than 30% over the past 40 years, and more than 50% of them are part-time workers.
Ms. Matsui is known for her research on womenomics, which explores the economic benefits of promoting women's participation in Japan's labor market. Former Prime Minister Shinzo Abe's policies were influenced by her work.
Matsui said efforts to increase the number of women in leadership positions are “a matter of trial and error to find the best fit” for the organization. In Japan, where the birthrate is declining and the population is aging, diversity is essential for companies' competitiveness because “friction can lead to innovation and uncover unexpected risks,” he said.
The former chief Japanese equity strategist, who retired at the end of 2020 after 26 years at the company, has also witnessed the changes in Japan since the bubble era.
The driving force behind the rise in Japan's stock prices is “expectations that the economy is emerging from deflation,” Matsui said, referring to the recent record high of the Nikkei Stock Average. He said the market is finally beginning to see a virtuous cycle of improved profitability, wage growth and consumption.
Matsui said that corporate structural reforms will be an important catalyst for the market.
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“The governance part is probably more important than anything else,” she said, noting that Japanese companies are thinking more about capital efficiency and shareholder returns.
Matsui praised the recent share buyback announcement as a good step forward and said he would like to see more plans for dividends. Having more diverse boards as part of governance reforms will bring different perspectives that will be valuable to these companies, he said.
Matsui teamed up with three other experienced female financial executives to launch a venture capital fund in 2021. The M-Power Partners Fund, which is rare in Japan for female leaders, aims to invest $150 million in sectors such as healthcare, fintech, education and the environment. .
The biggest surprise for Mr. Matsui, who has been interacting with various startup companies over the past three years, was the difference in the way the younger generation thinks. Young men have vastly different values than their parents, and they place greater emphasis on work-life balance.
Matsui said, “What will move mountains is the values and power of the next generation.''
© 2024 Bloomberg
