To “exhibit accountability,” Mitsuko Tottori, the Chief Govt Officer of Japan Airlines, will take a 30% cut in her month-to-month salary for 2 months following a current “alcohol-related incident” involving its cabin crew members, in accordance to a report.
Business Insider reported on Friday that the airways referred to as the incident “a particularly severe administration failure,” including that two executives accountable for security and cabin operations will obtain 20% pay reductions for one month.
All different administrators and government officers will obtain 10% reductions for a month, a Japan Airlines spokesperson advised BI.
What was the incident?
The disciplinary actions got here after two cabin attendants drank the day earlier than a home flight, regardless of firm coverage prohibiting consuming past a sure time earlier than a flight, in accordance to Kyodo News.
The spokesperson advised BI that one cabin crew member was fired, whereas one other crew member was suspended for disregarding the coverage.
“By means of these measures, we exhibit our uncompromising dedication to strengthening our oversight and executing basic organisational reform,” the spokesperson mentioned. “We settle for full accountability for the structural weaknesses that failed to forestall this incident and for the insufficiency of our earlier security measures.”
Japanese company tradition
Docking a CEO’s salary to present accountability for an worker’s mistake is an ordinary observe in Japanese company tradition.
In some instances, top-level executives might be anticipated to resign, Curtis Milhaupt, a Stanford Regulation Faculty professor with experience on Japan’s authorized system, advised Business Insider.
“A voluntary pay cut by a senior government as an indication of contrition for worker misconduct is an ordinary function of Japanese company tradition,” he mentioned, “not a requirement stipulated within the company constitution or bylaws.”
A number of senior executives in Japan have beforehand taken salary cuts following worker misconduct.
In December 2024, Kentaro Okuda, the pinnacle of Japanese funding financial institution Nomura Holdings, apologised and took a pay cut for 3 months after a former worker was charged with a number of crimes, together with tried homicide and theft, in accordance to a Reuters report. Different senior managers additionally took pay cuts.
In January 2025, executives at MUFG Financial institution, Japan’s largest financial institution, took a three-month pay discount after an worker was accused of stealing $9 million in valuables from clients’ deposit containers, The Related Press reported.
Milhaupt mentioned that such monetary disciplinary actions, whereas not unusual in Japan, are sometimes extra symbolic than a foolproof measure to cease company misconduct.
“It’s merely a means of speaking a way of duty to the general public,” Milhaupt mentioned. “There may be loads of company misconduct in Japan, as there may be in every single place. So it’s uncertain that these expressions of regret successfully deter misconduct.”
On the very least, company accountability in Japan comes with a pay cut and an apology.
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