Fujitsu cuts executives' pay after TSE systems failure
28 November 2005 | 7371 views | 0
Japan's Fujitsu says it has cut the salaries of its president and six other top executives following its role in the systems crash that halted trading at the Tokyo Stock Exchange (TSE) earlier this month.
The TSE has blamed Fujitsu - which is responsible for the development and support of its trading platform - for its worst ever systems crash earlier this month.
The shutdown was caused by the failure of Fujitsu to issue some instructions linked to a software upgrade carried out last month to its subsidiary, Tosho Computer Systems (TCS). The exchange says "part of a necessary step was missing in the instruction" which caused a malfunction during a regular monthly clean-up of the dealing system.
Fujitsu president Hiroaki Kurokawa will take a salary cut of 50% for six months from December. Salaries of six other executives will be cut by 10-25% for three to six months.
The move follows a similar set of penalites imposed by TSE which cut the pay of its president and nine other senior executives for six months following the systems breakdown.