Accountability Push Intensifies
KADOKAWA CEO Natsuno Faces Accountability Push After Sharp Decline in AGM Support
Anonymous
KADOKAWA CEO Takeshi Natsuno survived a shareholder vote on June 24, 2026 — but just barely. His support collapsed to 59.68%, down from 90.26% the year before, marking one of the weakest mandates for a sitting CEO of a major Japanese listed company in recent memory. Business Wire reported that activist investor Oasis Management, which owns 15.25% of KADOKAWA shares, called the result a clear signal that the board must act.
Oasis founder Seth Fischer did not mince words. "For a sitting CEO of a major Japanese listed company, [59.68%] is an exceptionally weak mandate," he said. "Most other CEOs would understand their leadership was untenable." Oasis framed the AGM outcome as a "turning point" in its campaign to overhaul governance at the anime, manga, and video game giant.
Oasis Built Its Case Over Five Years of Failures
Oasis did not arrive at this fight overnight. The fund spent years documenting what it calls three core failures under Natsuno's leadership. Return on equity fell from 8.2% to just 0.5% during his tenure. Earnings per share dropped 89%. Even the runaway success of FromSoftware's Elden Ring — which sold over 30 million copies — failed to deliver full value, because KADOKAWA had ceded international publishing rights to Bandai Namco, according to Business Wire.
Then came a cybersecurity disaster. In June 2024, a ransomware group called BlackSuit breached KADOKAWA's systems. The attack leaked data from roughly 254,000 users and knocked online services offline for two months. Staff had to physically unplug power and LAN cables to stop hackers from restarting servers remotely. The Japan Fair Trade Commission also twice penalized the company for mistreating freelancers, most recently finding that KADOKAWA failed to set written payment terms for over 100 writers and illustrators.
Proxy Advisors Piled On, Giving Institutions Cover to Rebel
On June 11, 2026, both ISS and Glass Lewis — the two most influential proxy advisory firms in the world — recommended that shareholders vote against Natsuno's reappointment. ISS stated plainly: "Given the background of questionable strategy and poor execution, replacing Natsuno appears as the best path forward," as reported by Business Wire. The rare double recommendation gave large institutional investors the cover they needed to break with management.
Oasis also pushed its own formal proposal to dismiss Natsuno outright. That proposal received 26.79% support — a high figure for a removal vote in Japan, where such challenges rarely gain traction. Board Chair Hiroo Unoura fared little better in his own vote, pulling just 75.56% support. Director Nobuo Kawakami received 77.86%, signaling broad dissatisfaction that extended well beyond the CEO, according to Business Wire.
KADOKAWA Responds With a Governance Concession
Following the vote, KADOKAWA said it would "review its management structure, executive compensation, and medium-term business plan" to address investor concerns, Reuters reported. The company also appointed Koji Okura, a former Mitsubishi Heavy Industries executive, as a new independent board member and audit committee member. Analysts viewed the move as a concession aimed at the roughly 40% of shareholders who withheld support from Natsuno.
The board continues to back Natsuno, arguing that removing him now would disrupt ongoing reforms. Management frames weak financial results as a short-term cost of restructuring and investing in a "quality over quantity" strategy for its anime division. But Oasis is not satisfied. The fund holds 22,715,600 shares worth approximately JPY 70 billion, giving it significant legal rights under Japanese law — including the ability to call an extraordinary shareholder meeting.
What Oasis Wants Next — and Why It Matters for Japan Inc.
Oasis has made its agenda clear. It wants KADOKAWA to bring FromSoftware's international publishing in-house, arguing that self-publishing a blockbuster title could recover billions in profit currently going to third parties. It also wants Natsuno gone. Some Japanese legal commentators have already described Natsuno as being on a "countdown to resignation," given that nearly four in ten shareholders voted against him remaining in his role.
The broader significance is hard to overstate. Activist campaigns rarely produce results this visible at major Japanese firms. The alignment of ISS, Glass Lewis, and a 15.25% block shareholder against a sitting Nikkei 225 CEO — and a vote result below 60% — signals that Japan's corporate governance culture is changing fast. Oasis has made clear it will keep the pressure on until real accountability arrives at KADOKAWA.
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