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Japan has decided to require listed companies to disclose in their annual securities reports the ratio of women in management positions, in a bid to increase female leaders in the country’s male-dominated corporate world.
The Financial Services Agency’s move to oblige about 4,000 firms, mostly listed, comes as investors are paying more attention to how women are promoted and help their companies perform better.
The agency aims to make the disclosure mandatory possibly in fiscal 2023, starting in April next year, through a Cabinet Office ordinance revision.
Under the Japanese financial watchdog’s plan, the listed companies must now also disclose details such as the average pay by gender and the ratio of male workers who took child care leave.
Currently, the securities reports require stating information such as the number of employees and their average age. Under law, companies are penalized for making any false statements.
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