[TOKYO] Nomura Holdings more than doubled Kentaro Okuda’s pay last year, rewarding the chief executive officer for guiding Japan’s largest brokerage to a record annual profit.
Okuda’s compensation rose to 1.208 billion yen (S$11 million) in the year ended Mar 31 from 506 million yen a year earlier, according to a filing on Monday (Jun 23). Christopher Willcox, the firm’s highest-paid executive officer, who oversees trading and investment banking, saw his remuneration jump 25 per cent to US$15 million.
Nomura’s profit hit an all-time high last fiscal year as the return of inflation to Asia’s second-largest economy energised investors. Pretax income at Willcox’s wholesale division hit a 15-year high as global securities trading rebounded and cost controls improved. Dealmaking got a boost from Japan’s corporate governance overhaul.
The Japanese firm was in the spotlight last year after a staffer was found to have manipulated the bond market and a former Nomura worker was charged with robbery and attempted murder. Okuda and other executives volunteered to return a portion of their pay for several months following the incidents. Willcox did not take a pay cut because he joined Nomura after the bond derivatives trades took place.
“The Compensation Committee makes decisions based on the overall performance of the group as well as individual achievements and contributions,” a spokesperson said by email.
Okuda’s compensation compares with 398 million yen paid last fiscal year to Akihiko Ogino, CEO of Daiwa Securities Group, Nomura’s biggest domestic rival, filings show. Ogino’s remuneration was the highest for a Daiwa CEO since at least fiscal 2004.
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The once-a-year filing offers a rare peek into some of Nomura’s inner workings, including manpower at each of its main business lines in Japan.
The number of employees at the firm’s cash-cow domestic wealth management division fell by 283 people to 7,045, the lowest in 18 years. It slipped for the seventh consecutive year even though Go Sugiyama, who runs that business, declared an end to an era of staff reduction and signalled a desire to hire mid-career talent.
Nomura’s so-called alumni network membership grew, with the number of registrants reaching around 290, compared with about 250 a year earlier. The company established the network in January 2023 to stay connected and regularly re-engage former employees who once belonged to its investment banking or asset management teams.
The report came a day before Nomura’s planned annual shareholder meeting in Tokyo. Proxy adviser Institutional Shareholder Services has recommended stockholders vote against the reappointment of Okuda and the company’s chairman Koji Nagai in light of the scandals. BLOOMBERG
