Bloomberg News

Olympus Executives to Take Pay Cuts After Fraud, Memo Shows

December 20, 2011

Dec. 20 (Bloomberg) -- Olympus Corp. executives will take pay cuts starting this month after the Japanese camera maker restated earnings, wiping out 70 percent of its net assets, because of an accounting fraud that lasted more than a decade.

President Shuichi Takayama’s salary will be reduced by 50 percent, while executive vice presidents, senior executive managing officers and executive managing officers will take a 40 percent cut, according to an internal company memo, a copy of which was given to Bloomberg News. Executive officers will take a 30 percent reduction.

The cuts will continue for the “foreseeable future,” according to the memo.

Tsuyoshi Kitada, a spokesman at Olympus, declined to comment on the memo.

--Editor: Ben Richardson

To contact the reporters on this story: Takashi Amano in Tokyo at tamano6@bloomberg.net; Mariko Yasu in Tokyo at myasu@bloomberg.net

To contact the editor responsible for this story: Ben Richardson at brichardson8@bloomberg.net


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