Nomura boss takes pay cut after employee ‘tried to kill clients’

The boss of Japanese bank Nomura has taken a short-term pay cut after a former employee was charged with robbery of bank clients, attempted murder and arson.

The worker allegedly stole money from clients and set fire to their home after visiting them on 28 July this year, the bank said in a statement.

The employee was dismissed a week later, and was arrested in October.

Nomura apologised to the alleged victims, and said chief executive Kentaro Okuda would voluntarily return 30% of his pay for three months.

In addition, nine other Nomura directors and executives will return 20% to 30% of their pay for the same period.

The bank said the former employee told the branch office manager in Hiroshima on 2 August that police suspected him of arson in relation to a fire that occurred at a client’s home, and that he had stolen money from the clients when he visited their home.

He was sacked by the bank on 4 August, and Nomura said “strict disciplinary action” had been taken against relevant managers.

After learning of the alleged robbery the bank said it had immediately contacted the former employee’s clients and “launched an investigation into other possible incidents”.

The employee gave asset management advice to individual and corporate clients.

Police arrested him on 30 October, and he was charged by the Hiroshima District Public Prosecutors Office on 20 November.

“We would like to express our heartfelt sympathy and apologize to our clients who suffered because of this incident. We also apologize to all those affected by the trouble it is causing,” Nomura said in a statement on Tuesday.

“We take this matter very seriously,” it added. “An incident like this must never happen at a financial institution entrusted with looking after its clients’ assets.”

It said it had brought in “more rigorous and effective measures” to “ensure that our clients feel confident using our services”.

These include managers going with employees when they visit clients’ homes and accompanying them when they speak on the phone.

Nomura said it would “strictly manage” client visits, and monitor employees using data from company mobile phones and dashboard cameras.

It will also require employees to take a block of continuous leave each year to allow the bank to detect any “potential wrongdoing”.

Nomura is one of the largest banks in Japan and operates in about 30 countries and regions.

It focuses on wealth management, investment management, global markets and investment banking.