INTERVIEW: Sojitz Eyeing Shift to Merit-Based Pay System

Tokyo, Feb. 28 (Jiji Press)--Sojitz Corp. <2768> plans to shift to a flexible pay system that allows employees with outstanding performance to enjoy significant salary growth, President and CEO Masayoshi Fujimoto has said in a recent interview.

The company "will pay more to those who achieve results and pay less to those who don't," Fujimoto said, expressing the firm's resolve to break away from the seniority-based wage system widely adopted at Japanese companies.

The major Japanese trading house plans to review its personnel system as early as in spring 2024.

"It is OK to pay salaries equivalent to amounts for those in managerial positions to rank-and-file employees if they are contributing to the company," Fujimoto said.

"What's problematic is to have high-paid employees who do nothing but stay at the firm," he went on to say, suggesting that it will be possible, under the new pay system, for employees to experience significant reductions in salary depending on their achievements and work attitude, Fujimoto said.

[Copyright The Jiji Press, Ltd.]