May 24, 2019
By Taro Fuse and Takashi Umekawa
TOKYO (Reuters) – The chief executive of Nomura Holdings will take a 30 percent pay cut for three months after accepting responsibility for an improper handling of market information by Japan’s top brokerage.
CEO Koji Nagai told a news conference on Friday that he would take responsibility for the information leak by the company but would not step down.
“Management itself has to implement the reform measures, that is the duty of management,” he said.
Nomura confirmed late on Thursday that information related to listing and delisting criteria now under review by the Tokyo Stock Exchange had been “handled improperly”.
“We take this matter very seriously,” Nomura said in a statement.
Two sources told Reuters that a Nomura employee leaked information about the exchange’s criteria review to investors. The sources also said Japan’s Financial Services Agency is planning to slap the company with a business improvement order – a formal warning from the regulator to improve business practices.
(Reporting by Taro Fuse and Takashi Umekawa; Writing by David Dolan; Editing by Anshuman Daga)