Sanwa Bank plans to cut the retirement allowances of its executives by up to 50 percent in a move to clarify management's responsibility for accepting 700 billion yen in public funds and posting substantial net losses for two consecutive business years, bank sources said Friday.
The revisions to its internal rules concerning retirement allowance were to be announced at a general meeting of shareholders later in the day, the sources said.
Allowances for Chairman Akira Watanabe and President Naotaka Watanabe, who were to step down the same day, will be reduced substantially, although the bank has yet to determine specific amounts, according to the sources.
Amid swirling public criticism of the comparatively high salaries of bank executives, analysts said, other banks that also received public funds will likely follow Sanwa's move.