Kanden Executive compensation for cuts due to worsening business Secretly compensated after retirement March 17 5:18
Kansai Electric Power revealed that 18 executives had secretly reimbursed some of the executive remuneration cut during periods of poor business performance after retiring. The total amount of compensation is 260 million yen.
Following the TEPCO nuclear accident in 2011, Kansai Electric Power stopped operating nuclear power plants, resulting in poor business performance and cutting off some of the executive compensation during this time.
Since then, Kansai Electric Power has secretly compensated the retired 18 officers for a total of 260 million yen.
The reimbursement lasted from 2016 to last October, after having raised the electricity rate twice for users.
One of the eighteen, former vice president Hidemi Toyomatsu, received a monthly compensation of 900,000 yen.
In addition, the company paid over 300 million yen from a former assistant in Takahama-cho, Fukui Prefecture, and the company paid 300,000 yen every month until the tax was paid to the national tax authorities with a revised declaration.
Kansai Electric Power stated that the reason for the compensation was "considering that we worked hard to improve during times of difficult management," but in the future we will ask former executives to return them.
At the press conference on Tuesday, Masayoshi Matsumoto, chairman of the Kansai Economic Federation, criticized the compensation as saying, "The remuneration cut at my company remains the same. There is no way to compensate for taxes."