Welcome to the Reuters.com BETA. Read our Editor's note on how we're helping professionals make smart decisions.
Skip to main content


Mizuho executives take pointless pay cuts

3 minute read

Koji Fujiwara, President and CEO of Mizuho Bank, core banking unit of Mizuho Financial Group, attends an interview with Reuters at the bank's headquarters in Tokyo, Japan, April 19, 2017. Picture taken April 19, 2017. REUTERS/Toru Hanai

HONG KONG, June 16 (Reuters Breakingviews) - Japan’s third-largest financial institution by assets has been plagued by technology problems for a decade, but its chief executives are refusing to take responsibility. After a series of embarrassing incidents this year, including one which froze nearly all of its automated teller machines, the Nikkei business daily reported Mizuho Bank CEO Koji Fujiwara would go, while Tatsufumi Sakai, boss of parent Mizuho Financial Group (8411.T), would take a pay reduction. A single departure wouldn’t resolve such a stubborn problem, but it would at least signal a start .

Now it appears Fujiwara will stay on and take a 50% pay cut for a paltry four months read more , while Sakai will be similarly docked for six. Three IT & Systems Group leaders have been reassigned – not fired.

An internal investigation blamed corporate culture for the flounders. That was precisely the financial watchdog’s conclusion 10 years ago. In theory, cultural problems mean everyone is responsible. In reality, nobody is. In Japan, investors rarely lose money betting against change. (By Pete Sweeney)

On Twitter http://twitter.com/breakingviews

Capital Calls - More concise insights on global finance:

Corporate America blowback read more

U.S. and EU bury trade hatchet in China’s back read more

SoFi lands a Wall Street internship read more

Emirates joins airlines’ high-loss club read more

Singapore can wield stick to win tech IPOs read more

SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: <a href="http://bit.ly/BVsubscribe" target="_blank">http://bit.ly/BVsubscribe</a> | Editing by Antony Currie and Katrina Hamlin

Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.

More from Reuters