In a shocking development, Japan’s largest investment bank, Nomura, is facing public scrutiny after a former employee was charged with robbery, attempted murder, and arson involving elderly clients. The bank’s CEO, Kentaro Okuda, has taken a 30% voluntary pay cut for three months, with other senior executives following suit.
The former employee, a 29-year-old wealth manager at the Hiroshima branch, allegedly drugged an elderly client and their spouse, stole cash, and set their house on fire. The individual, who joined Nomura in 2018, was dismissed in August and is now facing legal action.
At a press conference on Tuesday, Okuda and three senior executives offered a formal apology, bowing in unison to express regret. Okuda stated, “We deeply apologise to the victims and others involved for the inconvenience and concern caused. We are truly sorry.”
Nomura has pledged to overhaul its internal processes to prevent similar incidents in the future. Key changes include:
This is the second recent pay cut for Okuda, who previously returned 20% of his salary for two months following a fine for manipulating government bond futures. Despite these scandals, Nomura reported strong profits of ¥98.4bn (£518m) between July and September, more than double the same period last year.
The bank confirmed that account closures following the incident were minimal, indicating that client trust has largely been retained.
Despite the controversies, Nomura’s stock has risen by 54% over the past year, driven by strong performances in investment banking and wealth management.
