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Toshiba executives to forgo bonuses over accounting scandal

JIJI, Staff Report

Toshiba Corp. will forgo bonuses to all 33 executive officers for the current business year as managers take responsibility for an accounting scandal, company officials said Thursday.

The move is aimed at restoring trust in the company as soon as possible, the officials said.

The performance-linked payment, usually paid in July, was provisionally decided at zero in June after final earnings for fiscal 2014 were delayed amid revelations of accounting irregularities.

Separately, Toshiba has cut basic remunerations for President Masahi Muromachi by 90 percent, for vice presidents by 30 percent and for the other executives by 20 percent in the wake of the scandal.

The company said it planned to maintain the reductions in basic pay until it resumes dividend payments.

It emerged this year that from fiscal 2009 to 2014 the firm manipulated its accounting to produce a ¥152 billion net profit.

A third-party investigation committee found that Toshiba’s president and two former presidents pressured subordinates to produce profit at any cost. It also found that Toshiba’s corporate culture prevented subordinates from standing up to their bosses.

In July, the three — Atsutoshi Nishida, Norio Sasaki and Hisao Tanaka — resigned from their posts at the time. Muromachi, who was then chairman, took over as president.

The report did not allege Muromachi’s involvement in the accounting manipulation.

  • disqus_vBekJrf7g5

    Give up bonus? Gee, that’s big of them! They ought to be in jail!

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