Following the announcement of administrative penalties against Nomura Securities Co. for its illegal dealings with a "sokaiya" corporate extortionist, Nomura will cut the salaries of its board members and punish 25 of its employees, President Junichi Ujiie said July 30.
Speaking to a news conference, Ujiie told reporters that the firm's chairman and president would undertake a 30 percent salary cut for five months, senior managing directors will face a 20 percent cut and managing directors' salaries would be reduced by 15 percent for the same period. Other board members and auditors will receive 10 percent salary cuts, while reprimands and strict warnings are in store for 25 of its employees.
"Considering the graveness and importance of the number of employees being penalized for the scandal, I have to admit that our company as a whole was involved in the scandal," he said. He said that Nomura will try to do its best to rebuild the company into an organization that can genuinely abide by rules and regulations.
Asked whether he thinks that Nomura will not be found to be the only one who has conducted illegal transactions, Ujiie said that it is possible that other securities firms have done similar things. "In all probability, yes, it is quite likely so," he said. Ujiie predicted that Nomura's business will be affected severely by the punishment, but that the company will try to recoup business by developing attractive and competitive products and by reducing costs. However, Nomura handles a large sum of equities, has cultivated a worldwide network and has established long-term trust with its Japanese customers, he said. "If we focus on improving the quality of our products and cost-cutting efforts, we can rebuild our business," he said.