Tokyo exchange executives take pay cuts after crash

Senior executives at the Tokyo Stock Exchange are to get temporary pay cuts of between 10% and 50%, following a systems failure that shut down Tokyo trading for four-and-a-half hours on 1 November.

Senior executives at the Tokyo Stock Exchange are to get temporary pay cuts of between 10% and 50%, following a systems failure that shut down Tokyo trading for four-and-a-half hours on 1 November.

Despite the regular occurrence of IT system crashes in business, this is believed to be the first time that those deemed to be responsible for an IT problem have been given publicly announced pay cuts.

Takuo Tsurushima, president of the Tokyo Stock Exchange, will see his pay cut in half for six months.

Sadao Yoshino, chief financial officer and senior managing director, and Tomio Amano, managing director of the exchange, with responsibility for the IT system, will both lose 30% of their pay for six months. In addition, another five staffers are to lose pay.

The outage was the most serious trading systems failure to have hit the electronic exchange since it migrated from on-floor trading, and resulted in billions of pounds-worth of lost trades.

The outage was blamed on a software upgrade from Fujitsu which supplies the Tokyo trading system. A bug in the software, installed the previous day, was not discovered until trading was about to start.

Fujitsu said it was also considering whether the directors on its board would be taking a collective pay cut. It is believed Fujitsu had provided the wrong installation instructions for the software upgrade.

The US Nasdaq trading system suffered a system problem earlier this year, but that only lasted a number of minutes. Millions of dollars in trades were lost, however.

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