JAPAN’S most senior business executives are bracing themselves for unprecedented public scrutiny – and possibly public anger – over the size of their pay packets.
Over the next fortnight companies will declare, for the first time, who among their management earns more than 100 million yen ($1.3 million) a year.
A new rule compels companies to announce the exact breakdown of executive remuneration above that figure. Most are planning to do so at their annual shareholder meetings, which fall between now and the end of the month.
Atsushi Saito, chief executive of the Tokyo Stock Exchange, is among many within the Japanese business establishment unhappy about the new rule, which was devised, debated and thrust into the corporate rule book in the space of only a few weeks in February.
“Just showing the amounts will invite criticism from the public and a sense of disparity,” he said.
The law has triggered a scramble to massage the figures lower, but nonetheless the forced declarations will highlight even more starkly the yawning disparity of attitudes between the world’s two largest economies.
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