MUFG penalises CEO and executives with pay cuts
MUFG reduced salaries of its Chief Executive Officer and five other executives following breaches of ‘firewall’ regulations.
Largest banking group in Japan, Mitsubishi UFJ Financial Group (MUFG), will cut the pay of its CEO and five other executives due to breaches of ‘firewall’ regulations at its banking and securities arms. The Financial Services Agency (FSA) ordered MUFG to submit business improvement plans after discovering these breaches, marking a significant regulatory action.
Group CEO Hironori Kamezawa and five other executives will have their monthly salaries reduced by 30% for two to five months. Additionally, three former directors at MUFG’s banking unit and one at its securities arm are required to return 10% to 30% of their three-month salary. Kamezawa, who earned 339 million yen ($2.16 million) in the last fiscal year, will also face these cuts.
The FSA found at least 26 cases where confidential client information was shared between MUFG Bank and its two securities partnerships with Morgan Stanley from 2020 to 2023. MUFG Bank also offered preferential lending rates to clients doing business with these brokerages, violating regulations that prohibit sharing customer data without consent.
In response, MUFG has submitted a business improvement plan to the FSA. The company is taking measures to address the regulatory breaches and ensure compliance with financial regulations in the future.
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