Nomura Real Estate Holdings pres. to return 20% of pay

April 25, 2018

Tokyo- Nomura Real Estate Holdings Inc. President Eiji Kutsukake has said he will return 20 percent of his executive salary for three months from April to take responsibility for a subsidiary's fatal operation of a discretionary work system.

The subsidiary, Nomura Real Estate Development Co., abused the discretionary work system to force hundreds of employees to work illegally long hours with unpaid overtime, causing one of them to commit suicide in 2016.

Nomura Real Estate Holdings plans to pay out by the end of May a total of some 200 million yen in unpaid wages to approximately 600 employees of the subsidiary, including the overwork victim.

The holding company will on Thursday announce the wage compensation plan and measures to prevent deaths caused by the work system.

Speaking to reporters on Tuesday, Kutsukake admitted the group's poor labor management, vowing not to let such a mishap happen again.

Besides Kutsukake, the parent firm's vice president, Seiichi Miyajima, also president of the property development unit, will give up 20 percent of his salary and 13 other executives 10 percent for the three months. Jiji Press