Tokyo Stock Exchange slashes executives' pay after systems breakdown
10 November 2005 | 31653 views | 0
The Tokyo Stock Exchange (TSE) is to cut the pay of its president and CEO and nine other senior executives for six months following the systems failure that halted trading at the exchange last week.
In a statement, TSE says it will cut president and CEO Takuo Tsurushima's monthly salary by 50% for six months from November. The exchange's systems chief Tomio Amano will receive a 30% pay cut over the same period.
Seven other TSE executives will also take cuts in their monthly salary of between 10-20%. TSE says its chairman Taizo Nishimuro will voluntarily forgo 50% of his salary for the six months.
TSE was forced to suspend trading of stocks and convertible bonds for more than four hours on 1 November following a problem with a software upgrade. The exchange later blamed Fujitsu - which is responsible for the development and support of its trading platform - for the breakdown.
On Friday Japan's Nagoya Stock Exchange was also forced to suspend trading because of a technical glitch with a system that distributes price information. Following the two incidents Japan's Financial Services Agency ordered the country's six stock exchanges to review internal IT systems and file a report on their findings by the end of this month.