Japanese video game developer GungHo Online Entertainment has rejected shareholders' demands for changes to executive pay. Investment firm Strategic Capital, which holds a 5.4% stake in GungHo, cited concerns about CEO pay, financial performance, and transparency. The firm claimed that GungHo had failed to launch a new successful game since 2012 and wasted $640 million on new games. Strategic Capital proposed seven changes, including a review of executive remuneration. GungHo's board of directors unanimously voted against the proposals, defending the CEO's high compensation package. Despite rejecting the proposals, GungHo has made changes to its shareholder return policy and enhanced its remuneration policy.



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