Financial times dated 1-jun says “Nomura’s 1600 staff- more than 50% of its investment arm adopted western style contracts” .
This will cut basic salaries , provide higher performance bonus and it will be easier to fire them in case of downturn.
Though the firm maintains that it is essential for integrating Japan and European acquisitions of Lehman , still it is in stark contrast with Japanese employer outlook of “stable Jobs” as well as against the government and regulators efforts all over world to curb executive compensation and golden parachutes.
So is Japanese embracing western culture in pay-packages ? It is difficult to comment with one such example.
More-over news article no where comments about employee reaction .One may doubt about the negotiating power with employees given recessionary trend and downturn in job-market .
Lets keep watching how other Japanese firm are responding …
