Japan Inc. must avoid America's astronomical executive pay

Wider CEO-employee compensation gap would threaten corporate harmony

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Japan Inc. was once praised for its strong sense of community with management often regarded by employees as an extension of themselves. © Reuters

Nobuko Kobayashi co-leads the EY Japan consumer services of global strategy consulting group EY-Parthenon.

Executive compensation at big, listed Japanese companies is steadily rising, with a large variable portion tied to shareholder returns. Yet average wage growth for workers is barely keeping pace with inflation.

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