Mizuho executives suffer unnecessary pay cuts

Koji Fujiwara, Chairman and CEO of Mizuho Bank, the main banking unit of Mizuho Financial Group, attends an interview with Reuters at the bank’s headquarters in Tokyo, Japan on April 19, 2017. Photo taken on April 19, 2017. REUTERS / Toru Hanai

HONG KONG, June 16 (Reuters Breakingviews) – Japan’s third-largest financial institution in terms of assets has been plagued by technology problems for a decade, but its executives are refusing to take responsibility. After a series of embarrassing incidents this year, including one that froze almost all of its ATMs, business daily Nikkei announced that Mizuho Bank CEO Koji Fujiwara would be leaving, while Tatsufumi Sakai, head of the parent company Mizuho Financial Group (8411.T), would suffer a pay cut. A single start wouldn’t solve such a stubborn problem, but it would signal at least a start.

Now it looks like Fujiwara will stay and suffer a 50% pay cut for a paltry four months, while Sakai will also be moored for six months. Three executives from the IT and systems group have been reassigned – not laid off.

An internal investigation blamed the corporate culture for the plagues. That was precisely the conclusion of the financial watchdog 10 years ago. In theory, cultural issues mean that everyone is responsible. In reality, no one is. In Japan, investors rarely lose money by betting against change. (By Pete Sweeney)

On Twitter http://twitter.com/breakingviews

Capital Calls – More Concise Information About Global Finance:

A look back at American companies find out more

US, EU bury trade ax behind China’s back read more

SoFi gets an internship on Wall Street read more

Emirates Joins Club of High Airline Losses Read More

Singapore can wield the baton to win tech IPOs Read more

SIGN UP FOR BREAKINGVIEWS E-MAIL ALERTS: http://bit.ly/BVsubscribe | Editing by Antony Currie and Katrina Hamlin

Reuters Breakingviews is the world’s leading source of financial calendar information. As the Reuters brand for financial commentary, we dissect big business and economic stories from around the world every day. A global team of around 30 correspondents in New York, London, Hong Kong and other major cities provide real-time expert analysis.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and to www.breakingviews.com. All opinions expressed are those of the authors.




Source link

About Emilie Brandow

Avatar

Check Also

Transformational macroeconomic trends shaping developed Asia through 2026

DUBLIN, September 20, 2021 / PRNewswire / – The report “Transformational Macroeconomic Trends Shaping Developed …

Leave a Reply

Your email address will not be published. Required fields are marked *