SMBC Nikko Securities Inc. said Tuesday it will cut the executive compensation of President Eiji Watanabe by 30 percent for four months after a former corporate officer at the brokerage was indicted over an insider trading scandal.
Chairman Shigenobu Aikyo will be hit with the same pay cut, while three other executives will receive lesser pay cuts.
The former officer has been indicted for leaking unpublished information on stock tender offers between 2010 and 2011 and reaping trading gains in conspiracy with an acquaintance.
As he was on loan to the brokerage from Sumitomo Mitsui Banking Corp., SMBC Nikko plans to provide more thorough training in securities business operations to such officials in an effort to help prevent insider trading.
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