Seven & i Chief to Face Pay Cut over 7pay Hack

Economy

Tokyo, Oct. 10 (Jiji Press)--Seven & i Holdings Co. <3382> said Thursday that President Ryuichi Isaka will have his pay cut to take responsibility for a series of security breach cases in the major Japanese retail group's 7pay smartphone-based cashless payment service.

Seven & i also said that Tsuyoshi Kobayashi resigned as president of Seven Pay Co., the operator of the now-defunct service, on the same day, with board director Tatsuya Mizuochi promoted as new president.

"The lack of a sense of security across the group was the biggest factor" behind the 7pay problem, Isaka told a press conference in Tokyo.

Isaka and Seven & i Vice President Katsuhiro Goto will each face a 30 pct cut in their executive compensation for three months. Pay will be cut by 10 pct for three months for Katsutane Aihara, executive officer of convenience store unit Seven-Eleven Japan Co.

Immediately after the July 1 launch, the 7pay service was hit by a number of unauthorized access using registered members' login information. The service was terminated at the end of September.

[Copyright The Jiji Press, Ltd.]

Jiji Press