What's wrong at Pasona?

The lack of Profitability.

While Pasona is the third largest company in the Japanese staffing industry by revenue, it is ranked near the bottom when measured by PROFITABILITY despite its long and esteemed history, high level of brand strength and scale.

 

Why the lack of Profitability?

  1. Lack of substantial investments into profitable and growing business in the Japanese staffing industry
  2. No cost management
  3. Poor governance structure

As a result, the company is currently valued at half of the value of the Benefit One Inc. stake Pasona owns.

 

Why does profitability matter?

We fear that there is a material risk in the short and medium term for every stakeholder including employees, clients, lenders, creditors and minority shareholders if the company continues its very low level of profitability:

  • Employees: Risk of stable employment and economic interest
  • Clients: Risk of stable and value-added service from the company
  • Lenders and creditors: Risk of debt collection
  • Minority shareholders: Breach of the board of directors' duty to increase shareholder equity over the long term. The board has failed to increase profitability over the short, medium and long term. 

We respect the Company's principal "Solutions to Society's Problems"; however, we believe that the company needs transformational change in order to continue their challenge for the long term.

"We're committed to challenge social issues... MORE THAN INCREASING STOCK PRICE, REVENUE AND PROFIT..."

-- Yasuyuki Nambu, Representative Director, Group CEO and President, at FY 2017 May Annual Earnings Presentation