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Japanese CEO pay roughly 10% that of US counterparts

TOKYO -- Heads of Japanese corporations received compensation equal to about one-tenth of that paid to their U.S. counterparts last year, a survey by American consulting company Towers Watson revealed.

     The median compensation for chief executive officers of large companies in Japan was 129.5 million yen ($1.04 million), up 4% from 2013. For American CEOs, the figure -- converted into yen -- was 1.22 billion yen.

     For Japanese companies, 60% of CEO compensation came from salary, compared with around 10% in the U.S. American companies appear eager to motivate top managers by providing  more in stocks or other compensation linked to a company's earnings performance.

     British companies paid a high proportion of CEO compensation in forms linked to corporate earnings, too, with the median pay in terms of yen coming to 678.4 million yen.

     Japan's new corporate governance code, adopted in June, urges companies to set appropriate management compensation linked to medium- to long-term earnings of the company. Many Japanese corporations are seen as likely to increase such variable compensation.

     The survey targeted companies that generate at least 1 trillion yen in sales, based on the average foreign exchange rate from 2014. It covered 72 Japanese companies, 255 U.S. companies and 33 British companies.

(Nikkei)

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