Ex-Kansai Elec Chairman Found Responsible for Pay Scandal
Osaka, Aug. 17 (Jiji Press)--Kansai Electric Power Co. <9503> on Monday released a report from its compliance committee recognizing that those including former Chairman Shosuke Mori had breached the duty of care as board members over a pay scandal at the company.
It has come to light that the power supplier secretly compensated retired executives for part of pay cuts conducted for the firm’s poor business performances following the March 2011 accident at Tokyo Electric Power Company Holdings Inc.'s <9501> Fukushima No. 1 nuclear plant, which was heavily damaged in a powerful earthquake and tsunami.
The report said that the secret pay compensation is utterly unreasonable.
“The (then) management team of the company had a lack of understanding about corporate governance,” lawyer Naoto Nakamura, head of the committee, told a news conference.
The conclusion came after an investigation panel comprising outside lawyers recognized the responsibility of Mori and others over the incident in its report released earlier.
[Copyright The Jiji Press, Ltd.]