Nomura CEO Takes Pay Cut Amid Serious Client Safety Allegations

In the wake of severe allegations against an ex-employee, who has been charged with robbery and attempted murder of bank clients, Nomura CEO Kentaro Okuda announced a voluntary pay cut.

In an unprecedented response to a grave incident, Kentaro Okuda, the CEO of Nomura, a leading Japanese bank, has opted for a short-term salary reduction. His decision comes in light of alarming allegations against a former employee accused of robbing bank clients, attempting murder, and committing arson. According to a statement from the bank, the alleged crimes occurred on July 28, when the employee visited clients' homes, stole their money, and reportedly set their residence on fire.

The disgraced employee was dismissed shortly after the incident, in early August, and subsequently arrested in October. Nomura expressed its apologies to the victims and stated that Okuda would take a 30% cut to his pay for three months, while nine other key executives would see their salaries reduced by 20% to 30% during the same period.

The incident came to light when the former employee disclosed to his branch manager on August 2 that he was under police investigation for arson connected to the fire at a client's home. He was fired on August 4, prompting the bank to initiate immediate communication with affected clients and an internal investigation into any other possible misconduct.

The employee was responsible for advising both individual and corporate clients on asset management. He was arrested on October 30 and subsequently charged by the Hiroshima District Public Prosecutors Office on November 20.

In a statement, Nomura expressed, "We would like to extend our heartfelt sympathy and apologies to our clients affected by this incident. We take this matter very seriously and believe an occurrence like this should never transpire at a financial institution responsible for safeguarding its clients' assets." The bank has committed to implementing stricter measures to ensure client safety and confidence in their services, including mandatory supervision for employees during client visits and communications, as well as enhanced monitoring of employee activities.

Nomura operates across about 30 countries and regions, primarily focusing on wealth and investment management, global markets, and banking services. The bank has pledged to enhance its oversight policies and ensure rigorous client safety protocols.