Kentaro Okuda, the CEO of Nomura Bank, announced a voluntary 30% pay cut after a disturbing incident involving a former employee. The ex-employee is currently facing criminal charges for attempted murder, robbery, and arson for allegedly committing these crimes after visiting an elderly client at his home.
In a statement released by the bank, Okuda expressed his apology over the tragic event that involved so much distress to the affected and related parties. The shocking crime was when a former wealth management employee, aged 29, allegedly had drugged an elderly couple in Hiroshima, stole their money, and set their house on fire. The suspected former Nomura employee used to work in the group’s securities division and was sent packing out in August of this year.
As a gesture of good will towards the crime, Okuda has chosen to voluntarily reduce his pay by 30% for the next three months. In the same move, other senior managers in the bank have agreed to accept pay cuts for themselves in showing their commitment to the cause.
What Was The Bank’s Action?
The former employee had joined Nomura since 2018 as a new graduate in the securities division before moving on to asset management in 2022. The bank, Japan’s largest investment institution, has fully cooperated with law enforcement, ensuring the investigation proceeded without interference. The suspect’s disturbing actions included the drugging and robbery of the elderly couple during a scheduled home visit—a common practice for Nomura’s wealth management team to provide personalized services to clients.
After the incident, Okuda and three other executives appeared at a public bowing press conference, bowing to publicly express apologies. Okuda stated during his apology, “We are willing to deeply apologize to the victims as well as so many other people involved for the great inconvenience and concern it has caused. We are truly sorry.”
Improvement Practice To Prevent Such Future Wrongdoing
Nomura would undertake an overhaul of their internal operations to avoid making similar mistakes in the future as a result of this incidence. The bank has outlined a series of steps, including stricter supervision during home visits and enhanced approval processes for client meetings. Going forward, managers will accompany employees during home visits or phone calls with clients. Furthermore, Nomura plans to refine its recruitment procedures and provide ongoing ethics training for its staff to ensure a safer and more accountable work environment.
Nomura’s Recent Success Amid Scandals
Yet, despite such unpleasant incidents, the financial performances of Nomura are solid. The bank announced a net profit of ¥98.4 billion (£518 million) for July-September, and it is more than double that of the same period last year. The stock price of the bank is also robust, based on an increase of 54% over the past year. The growth is mainly contributed by both investment banking and wealth management sectors, which continue to drive the profitability of the bank.
Okuda took his second voluntary pay cut in recent weeks. Weeks ago, he agreed to return 20% of his salary for two months after Nomura was fined by Japan’s financial regulator for manipulation of government bond futures.
There has been little or no impact on the operations of the bank and its accounts closure, according to available sources. Nevertheless, the corporation is still committed to redeeming itself by doing better in terms of internal policies and addressing the issues raised by this crime.
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