Nomura Bank CEO voluntarily cuts salary by 30% following employee’s alleged attack on elderly client

Nomura Bank CEO Kentaro Okuda has voluntarily reduced his salary by 30% after a former employee was charged with attempted murder, robbery, and arson for allegedly attacking an elderly couple in Hiroshima

Kentaro Okuda, the CEO of Nomura Bank, announced a voluntary 30% pay cut following a disturbing incident involving a former employee. This ex-employee is currently facing criminal charges for attempted murder, robbery, and arson, allegedly committed after visiting an elderly client at their home.

In a statement, Okuda expressed deep regret over the tragic event, acknowledging the distress caused to all affected parties. The shocking crime involved a former wealth management employee, aged 29, who allegedly drugged an elderly couple in Hiroshima, stole their money, and set their house on fire. This former employee, who had worked in Nomura’s securities division, was dismissed in August of this year.

As a gesture of goodwill, Okuda has chosen to reduce his pay by 30% for the next three months. Other senior managers at the bank have also agreed to take pay cuts to show their commitment to addressing the issue.

Bank’s Response

The former employee joined Nomura in 2018 as a new graduate in the securities division before moving to asset management in 2022. Nomura, Japan’s largest investment institution, has fully cooperated with law enforcement to ensure the investigation proceeds without interference. The suspect’s actions, including drugging and robbing the elderly couple during a scheduled home visit, were particularly disturbing. Home visits are a common practice for Nomura’s wealth management team to provide personalised services to clients.

Following the incident, Okuda and three other executives held a press conference, where they publicly apologised. Okuda stated, conference, bowing to publicly express apologies. Okuda stated during his apology, “We are willing to deeply apologise to the victims as well as so many other people involved for the great inconvenience and concern it has caused. We are truly sorry.”

Preventive Measures

Nomura plans to overhaul its internal operations to prevent similar incidents in the future. The bank has outlined several steps, including stricter supervision during home visits and enhanced approval processes for client meetings. Going forward, managers will accompany employees during home visits or phone calls with clients. Additionally, Nomura will refine its recruitment procedures and provide ongoing ethics training for its staff to ensure a safer and more accountable work environment.

Nomura’s Financial Performance

Despite these unpleasant incidents, Nomura’s financial performance remains strong. The bank reported a net profit of ¥98.4 billion (£518 million) for July-September, more than double the profit from the same period last year. The bank’s stock price has also increased by 54% over the past year, driven by growth in both investment banking and wealth management sectors.

Okuda’s recent pay cut is his second in recent weeks. Previously, he agreed to return 20% of his salary for two months after Nomura was fined by Japan’s financial regulator for manipulating government bond futures.

The bank’s operations and account closures have seen little impact from these events. Nevertheless, Nomura remains committed to improving its internal policies and addressing the issues raised by this crime.