Hitachi Chemical to Cut Exec Pay over Inspection Frauds
Tokyo, Nov. 22 (Jiji Press)--Hitachi Chemical Co. <4217> said Thursday that its top leaders will endure a 50 pct pay cut for three months from December to take the blame for a series of product quality inspection frauds.
The punishment will be meted out to President Hisashi Maruyama and Chairman Kazuyuki Tanaka. Eleven executive officers will take a three-month pay cut of 20 to 30 pct, according to the core subsidiary of Hitachi Ltd. <6501>.
Executive Vice President Yoshihiro Nomura will be demoted to senior vice president because he had been aware of the misconduct, while Executive Officer Masanobu Habiro resigned for his involvement in falsifying inspection data.
In a report released the same day, an in-house special investigation committee said that the improper inspections affected some 30 products, more than half of all products on the company's lineup.
The affected products included lead storage batteries, semiconductor materials, automotive parts, display materials and print wiring boards.
[Copyright The Jiji Press, Ltd.]