Executive pay disclosure rules criticised in Japan

15 June 2010

Corporate figures in Japan have questioned new rules requiring firms to identify executives with remuneration packages in excess of 100 million yen (£750,000).

The majority of companies have until the end of June to disclose their compensation details, but many have claimed the requirement will prove to be a pointless and unproductive exercise.

According to the Daily Yomiuri, some firms believe tightening the disclosure regime is unnecessary, as executive pay levels in Japan remain significantly lower than at European and US companies.

Under the previous executive pay regulations, introduced in 2004, firms were required to publish compensation totals but did not have to disclose individual salaries.

President of the Tokyo Stock Exchange Atsushi Saito told the newspaper: "Just showing the amounts will invite criticism from the public and a sense of [income] disparity."

An official at a major bank added that the number of companies with executives earning enough to be subject to the new disclosure rules will be less than 100, out of 3,800 listed companies.