Masaaki Tanaka, the president and CEO of a state-backed investment fund, said Monday he and eight other executives will resign following a dispute with the industry ministry over their remuneration, which the government called "too high."
The resignation of all nine private-sector executives from Japan Investment Corp.'s 11-member board is likely to lead to a suspension of activities at the largest public-private fund in the country, a setback for the government of Prime Minister Shinzo Abe, which has promoted the use of such funds as part of its growth strategy.
The fund with ¥2 trillion of capital was created just three months ago to enhance Japan's industrial competitiveness by investing in entrepreneurial ventures and local companies focused on emerging technologies.