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Bloomberg
It’s a familiar story: a Japanese company is embroiled in scandal, then executives take pay cuts in a bid to make everything right.
SMBC Nikko Securities Inc. is the latest firm to do just that. Chief Executive Officer Yoshihiko Shimizu and Chairman Tetsuya Kubo are forgoing 20 percent of their salaries for two months after a former employee was arrested on suspicion of insider trading.
“We take this matter very seriously and sincerely apologise to our customers and other concerned parties for causing great concern and inconvenience,†the Tokyo-based unit of Sumitomo Mitsui Financial Group Inc. said.
The firm pledged to “take all necessary steps†to restore trust following the incident, in which the suspect allegedly gave tips on an acquisition to an acquaintance who then bought shares of the target company. The gesture is widely used in Japan as a way for managers to show contrition and responsibility without going so far as to resign.
Mitsubishi Materials said that executives at three units would forgo 10 percent of their pay for October amid a scandal over the falsification of product data.