Nomura Increases Nagai’s Compensation 80% as Profit Surges

Jun 27, 2014 3:10 am ET

(Updates with Daiwa executives’ pay in seventh paragraph.)

June 27 (Bloomberg) -- Nomura Holdings Inc., Japan’s biggest brokerage, increased Chief Executive Officer Koji Nagai’s compensation by 80 percent to 298 million yen ($2.9 million) last year as profit surged.

Nagai received a basic salary of 102 million yen, plus 17 million yen in stock options, 60 million yen in cash bonuses and 119 million yen in deferred bonuses for the year ended March 31, the company said in a filing to the Finance Ministry yesterday. His compensation was 166 million yen a year earlier.

In his first full year at the helm, Nagai took net income to an eight-year high of 213.6 billion yen as Prime Minister Shinzo Abe’s stimulus policies triggered a stock rally that spurred brokerage commissions and investment-banking fees. Daiwa Securities Group Inc. CEO Takashi Hibino also received higher pay as Japan’s second-biggest brokerage posted record profit.

Shares of Tokyo-based Nomura surged 61 percent last year as Japanese equities advanced the most in the developed world. The stock has since retreated, sliding 11 percent in 2014 to 720 yen. Daiwa has slumped 16 percent this year after more than doubling in 2013.

Nagai, 55, told about 1,500 investors at an annual shareholders meeting in Tokyo this week that he’s not satisfied with the share price. He said he’s seeking higher earnings per share after achieving a 50-yen target last fiscal year.

Other Banks

Other Nomura executives also received pay increases. Chief Operating Officer Atsushi Yoshikawa’s compensation swelled 69 percent to 270 million yen, and Chairman Nobuyuki Koga’s increased 23 percent to 192 million yen.

Daiwa CEO Hibino, 58, got a 35 percent raise to 291 million yen in the year ended March, a company filing showed today. Chairman Shigeharu Suzuki was awarded 241 million yen, up 28 percent. Tokyo-based Daiwa’s annual profit more than doubled to a record 169.5 billion yen.

Mizuho Financial Group Inc., Japan’s third-biggest bank by market value, didn’t publish its top executives’ pay because they received less than 100 million yen, the threshold for public disclosure in the country. Larger banks Mitsubishi UFJ Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. have yet to file their reports.

Nagai’s peers on Wall Street earned more. Goldman Sachs Group Inc. awarded Lloyd Blankfein at least $23 million, making him the highest-paid CEO among the largest U.S. banks, according to company filings. Morgan Stanley CEO James Gorman received $18 million.