My (relatively positive) update on corporate governance in Japan will be out tomorrow but how on God’s earth can Fujitsu think docking the CEO and Chairman 30% of their salary for 3 months is an appropriate remedial action for consistent bid rigging? 5 other directors will take a 10-20% haircut for 3 months too. Did the independent directors think this was appropriate?
Fujitsu, along with NEC and Oi Electric, announced that it had repeatedly been involved in bid-rigging with TEPCO in July last year and on the delivery of communication equipment for Chubu Electric Power Co., Ltd this February.
Whether the CEO and Chairman were complicit is not the point. They’d show investors a far cleaner set of heels to sack those involved in nefarious activity as a show of proper corporate governance. I very much doubt a 10-30% cut in salary for 3 months will affect those on the board. Perhaps cutting the use of the Toyota Century company car for 3 months might have been more of a deterrent. A CEO of a multinational Japanese tech company forced to ride the subway – the shame of it!