by Beth Connolly on June 1, 2012
2011 wasn’t a great year for Nomura. The bank’s net income dropped 60%. Stock shares fell to the lowest price they’d been in 37 years. Moody’s cut the bank’s rating to the lowest possible.
But Nomura decided to raise pay. The reasoning? It would prove to the world that they are still a great bank, though they’ve fallen on some hard times, according to one recruiter in Japan. And if shareholders complain, too bad, because compared to other banks’ Nomura’s compensation is still on the low end.
“This shows Nomura is still seeking to become a world- class player and it’s giving the higher salary in anticipation of future business, including merger advisory,” said Katsunobu Komizo, president at Executive Search Partners Co., Japan’s biggest recruitment firm focusing on banks. “Stakeholders may complain at the general meeting. Still, the compensation is low compared with global competitors.”
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