GungHo, a prominent Japanese game developer celebrated for its hit mobile game Puzzle & Dragons, has recently responded to shareholder worries regarding the salary of its president, Kazuki Morishita.
Some investors have raised eyebrows over his compensation, likening it to that of Nintendo’s president, Shuntaro Furukawa.
Shareholder Dissatisfaction
Earlier this month, shareholders expressed their dissatisfaction with the company’s direction.
They proposed improvements, drawing attention to various issues, including Morishita’s hefty salary—especially in light of GungHo’s struggles to replicate the success of Puzzle & Dragons with new titles.
In their defense, GungHo’s board swiftly rejected all shareholder proposals, asserting that there was a fundamental misunderstanding of the fiercely competitive landscape within the mobile gaming sector.
They provided a comprehensive legal response, contesting both the clarity and appropriateness of the shareholders’ suggestions.
Defending the Leadership
The board emphasized that concerns surrounding Morishita’s salary stem from underestimating his significant contributions to GungHo’s growth.
With a career spanning over two decades at the company, he has been an instrumental figure in its success.
Morishita is recognized for his leadership role, guiding the development of innovative games that embody the company’s mission to bring joy and wonder.
This vision has successfully generated stable revenues for more than a decade.
Notably, his influence includes introducing the widely popular Ragnarok Online to Japan and continually steering Puzzle & Dragons toward success.
Acknowledging the recent dip in revenue from Puzzle & Dragons, GungHo argued that shareholders overlooked key realities of the mobile gaming market.
With a constant flow of new games flooding the industry, even top titles typically experience limited longevity.
Future Tensions
Concluding their response, GungHo’s board reaffirmed the irreplaceable nature of Morishita’s leadership in game development and deemed his salary justified under the current circumstances.
Shareholders’ critiques centered on what they perceive as GungHo’s over-reliance on a single declining title, coupled with Morishita’s exorbitant pay.
The friction between company leadership and its investors appears likely to linger, suggesting ongoing tension in their relationship moving forward.
Source: Eurogamer