Daiwa Securities Group doubled compensation for its top executives last fiscal year and Nomura resumed paying cash bonuses as profit surged amid a market rally driven by Japan’s economic stimulus policies.
Nomura is paying the cash bonuses to executives after waiving them in the previous year, reports to shareholders show.
The rewards underscore the turnaround in fortunes for Japan’s two biggest securities firms since Shinzo Abe became prime minister in December on a pledge to end deflation. Rising fees and commissions helped net income at the Tokyo-based companies climb to the highest since before Lehman Brothers’ 2008 bankruptcy triggered a global recession.
'The rise in compensation shows that the long, bitter winter after the Lehman shock is over, thanks to Abenomics', said Mamoru Nagano, a professor of economics and international finance at Seikei University in Tokyo, referring to the nickname for Abe’s policies of fiscal and monetary stimulus coupled with deregulation.
'It’s positive to see that Japanese bank executives are receiving compensation linked to their firm’s performance as it gives them an incentive to form more aggressive strategies for growth', including through mergers or alliances, Nagano said.
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