Japan Press Weekly

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2011 June 22 - 28 [NUCLEAR CRISIS]

TEPCO executives receive additional salaries from related firms

Tokyo Electric Power Co. plans to cut its executives’ salaries in order to fund compensation for nuclear damages, but most of them are receiving additional wages by filling other executive posts in the utility’s related firms. This was revealed by Akahata on June 28.

According to TEPCO’s securities reports, 14 out of 17 representative directors (8) and managing directors (9) are also serving as external board members or outside auditors for the companies’ group firms.

For example, TEPCO President Shimizu Masataka is the director of Japan Football Village Co. Managing Director Nishizawa Toshio, who will soon assume Shimizu’s post, has been appointed as the director of Tokyo Electric Generation Co.

The electric company’s Chairman Katsumata Tsunehisa also serves as an external board member for two other firms. One of them is KDDI, a major telecommunication operator, which pays 7.5 million yen annually to Katsumata.

Vice President Tsuzumi Norio has executive posts in three other corporations (he resigned one post on June 14) and annually receives from two of them 12.8 million yen in total.

On May 20, TEPCO announced that it will suspend the payment of salaries for representative directors and cut managing directors’ salaries by 60% for 9 to 12 months.