Nichirei announces misconduct prevention measures, executive pay cuts

Nichirei Corporation (TSE:2871) announced comprehensive measures to prevent recurrence of misconduct and the disciplinary actions taken against executives, stemming from issues at its Chinese subsidiary. Following an investigation that revealed inadequate governance and internal controls within the subsidiary, Nichirei will reinforce its overseas management protocols. Key changes include clearer executive appointment criteria, with term limits, strengthened local governance, enhanced monitoring, and thorough compliance training. As a result, Representative Director Kenya Okushi will face a reprimand and a 10% reduction in monthly compensation for three months. Furthermore, Director Masahiko Takenaga and Director Yasutoshi Nakano will each return 10% of their monthly remuneration for three months. Managing Executive Officer Shuhei Obata will be demoted, reflecting the company's commitment to addressing the shortcomings that led to the misconduct and restoring investor confidence.