Would it bother you if your coworkers, your neighbours and others knew your salary? Since March 2010 according to Yomiuri Shimbun (K. Nishihara / N. Ogawa) the new rule from the Japanese Financial Services Agency requiring company executives making over 100 million yen a year to disclose the amount of pay they receive, has provoked a backlash from listed local companies. This year for the first time domestically listed companies must disclose the names of executives who received more than 100 million yen in a year for fiscal 2009 as well as their salary. On one side the amount of salary might surprise you or on the other hand the fact that it took for Japan quite a while to disclose this kind of information. After the scancal with Enron Corp. in 2001 in Europe and the United States, there has been a tendency to strictly monitor corporate compensation. Globally so far 15 countries have started with disclosure rules in an attempt to prevent management from receiving remuneration unrelated to the performance of the firm.
Some local companies were dissatisfied with the approach, because they did not understand why the agency set the threshold for disclosure at 100 million yen. In other countries in Europe or the United States the rule does not demand companies disclose compensation based on amount, but in general. According to the agency, average salary of listed company executives is about 25 million yen. On the other end then for example Shiseido Co. has announced that its president, Shinzo Maeda, received 121 million yen and CEO Carsten Fischer received 141 million yen in fiscal 2009.
Having worked previously as a Rep. Director myself I have to say although the amount of salary might seem high, I do not wish to trade with the pressure they have to face everyday.
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