Legislation to legalize stock options cleared the Diet on May 16, setting the stage for many Japanese corporations to introduce in June the highly lucrative system of remuneration available to many U.S. corporate executives and employees.
A bill to amend the Commercial Code to remove existing restrictions on such a practice was passed by a plenary session of the Upper House in the morning. The bill passed the Lower House on May 8. The revised Commercial Code will take effect June 1.
The deregulation move, urged by corporations for years, is expected to drastically raise the remuneration of Japanese executives and employees at well-performing firms. It is also expected to encourage head-hunting among rival firms.