Kanebo Execs Take Pay Cut
Management is remorseful for recent product recall.
By Kelly Wetherille Plus Icon
Kelly Wetherille
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TOKYO — Kanebo said Wednesday that ten of its executives are taking voluntary pay cuts for six months to show their remorse for a recent recall of over 50 products.
The company's chairman, Hajime Miyauchi and president, Masumi Natsusaka, will each take a pay cut of 50 percent of their salaries. The director in charge of research and technology will take a cut of 40 percent, and seven other executives will take cuts of between 10 and 20 percent. The cuts will begin from September and continue through next February. A spokesman for Kanebo said the company is not quantifying how much the cuts will amount to in yen, and that the money will not be used for any particular purpose.
"They know that the recall has incurred high costs and resulted in a loss of sales and profit for the company, so they made the choice to do this on their own as a way to help out," the spokesman said.
Kanebo announced in July that it was voluntarily recalling over 50 products containing the ingredient Rhododenol, due to customer complaints that the products left white patches on their skin. As of Sept. 1, the company has received approximately 615,000 units of affected products from customers who had purchased them, in addition to unsold stock returned by retailers.
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