Osaka – Kansai Electric Power Co. on Monday released a report from its compliance committee recognizing that executives including former Chairman Shosuke Mori had breached their duty of care as board members over a pay scandal at the company.
It has come to light that the power supplier secretly compensated retired executives for some of the pay cuts conducted due to the firm’s poor business performance following the March 2011 meltdown at Tokyo Electric Power Company Holdings Inc.’s Fukushima No. 1 nuclear plant, which was heavily damaged by a powerful earthquake and tsunami.
The report said that the secret pay compensation is utterly unreasonable.
“The management team of the company had a lack of understanding about corporate governance,” lawyer Naoto Nakamura, head of the committee, told a news conference.
The conclusion came after an investigation panel comprising outside lawyers recognized the responsibility of Mori and others over the incident in an earlier report.
The compliance committee was established under the direct supervision of the company’s board of directors in the wake of a high-profile gift scandal, in which scores of Kansai Electric executives received cash and goods from a late former deputy mayor of the town of Takahama in Fukui Prefecture. The town hosts the company’s Takahama nuclear power station.