DATE PUBLISHED: NOVEMBER 11, 2024
Traditionally, Japanese CEO compensation has been modest compared to global standards, with an emphasis on stable fixed compensation, reflecting cultural norms of collective responsibility and lifetime employment. However, recent years have shown a gradual shift, particularly among companies with international board members or significant overseas revenues. This trend is partly driven by the need to attract and retain top talent within the management teams in an increasingly global market as well as desire to encourage greater risk-taking to increase corporate value.
This article examines the evolving dynamics of CEO compensation in Japan, focusing on the Pharmaceutical and Automotive industries due to their highly globalized nature. These industries face intense international competition, requiring top talent and global market strategies, making them ideal for examining CEO compensation trends in Japan’s evolving corporate landscape.
