Japan Press Weekly

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2016 August 31 - September 6 [LABOR]

Large corporations’ internal reserves hit record high while workers’ wages decline

The amount of large corporations’ internal reserves in FY2015 reached a record high of 313 trillion yen while workers’ wages decreased. This was clearly revealed in survey results that the Finance Ministry published on September 1.

This underlines the failure of the Abe government’s economic policies based on the so-called “trickle down theory” asserting that if corporations make more in profits households will be better off.

The survey indicates that large companies with a capital of one billion yen or more in FY2015 posted their highest-ever ordinary profit of 40.2 trillion yen and net profit of 26.2 trillion yen.

The amount of executive compensation in FY2015 surpassed that in FY2014 in terms of both the total (860 billion yen) and average (18.65 million yen).

On the other hand, in the same survey, the average annual wage per employee fell by 18,000 yen to 5.61 million yen.

Past related articles:
> Large corporations accumulate internal reserves by taking advantage of tax cuts [July 8, 2016]
> Large corporations’ internal reserves hit record high under ‘Abenomics’ [September 3 and 4, 2015]