Kansai Electric Secretly Makes Up for Executive Pay Cuts
Osaka, March 16 (Jiji Press)--Kansai Electric Power Co. <9503> secretly compensated 18 retired executives for part of the pay cuts conducted for poor business results following the 2011 nuclear disaster, it was learned Monday.
Kansai Electric paid the executives a total of 260 million yen, equivalent to 13 pct of their total pay cuts. The payments were made partly for their contributions to the company when it was in a tough situation, a public relations official said.
The case represents yet another problem with the company's corporate governance system, pundits said.
Kansai Electric suffered a net loss for the fourth straight year from fiscal 2011 on surging thermal power fuel costs because nuclear power plants were suspended nationwide due to the nuclear accident at Tokyo Electric Power Company Holdings Inc.'s <9501> Fukushima No. 1 nuclear plant.
Kansai Electric started reducing executive pay in March 2012, the final month of fiscal 2011.
[Copyright The Jiji Press, Ltd.]