Daiwa Securities Group Inc., Japan's second-biggest brokerage, boosted pay to top executives by 36 percent last fiscal year as larger rival Nomura Holdings Inc. tripled compensation.
Chief Executive Officer Shigeharu Suzuki and his executive team received an average of ¥55 million in pay for the 12 months ended March 31, up from ¥40.5 million a year earlier, according to a report sent to shareholders and posted on Daiwa's Web site Friday. Nomura's executives received ¥145 million, up from ¥41.5 million.
Salaries at Nomura reflect its attempt to expand investment banking worldwide and compete for staff on a global basis, while Daiwa concentrates more narrowly on Asia and beefing up services for individuals in Japan, according to Executive Search Partners Co., a Tokyo-based financial-services recruitment consultant.
"Nomura thinks of compensation as a kind of business investment to boost revenue in the future for higher profit," said Katsunobu Komizo, chief executive officer of Executive Search. "Daiwa may think of it as a cost that should be minimized to increase the bottom line."
Hiroharu Misawa, a spokesman for Tokyo-based Daiwa, declined comment.