Senior executives face pay scrutiny in Japan

Many top executives in Japan will be required to reveal their remuneration deals for the first time as the deadline for new corporate disclosure rules approaches this month.

Under the regulations, publicly traded companies have to identify all individuals who earn more than 100 million yen (£751,000), as well as providing a breakdown of their compensation packages.

According to Bloomberg, the move could prompt more companies to consider performance-related pay structures, as the Japanese tradition of basing remuneration on seniority still lives on in many organisations.

Takeshi Komatsu, a Tokyo-based lawyer specialising in corporate governance, told the news agency: "Investors will be able to hold executives accountable for their remuneration by comparing it to the firm's performance."

It is also thought the disclosure rules could expose a significant gulf in compensation levels between Japanese executives and their non-native counterparts.

Japan's Financial Services Agency implemented the new regulations on March 31st and most companies have until the end of June to release their pay details.