Fujitsu execs' salaries slashed for systems glitch

Company will cut senior managers' pay for failure at Tokyo Stock Exchange

Top management at Fujitsu will see their pay cut over the coming months in punishment for a major computer failure at the Tokyo Stock Exchange that delayed trading on November 1, the company said on Friday.

Fujitsu was blamed by Tokyo Stock Exchange for the problems that delayed the start of trading until 1:30 pm local time, four and a half hours later than normal and one and a half hours before the end of the session.

Hiroaki Kurokawa, president, will see his pay cut by half for six months while two other company vice presidents, Michiyoshi Mazuka, who is responsible for Fujitsu's systems sector, and Koichi Hironishi, who is responsible for Fujitsu's financial systems sector, will have a quarter of their pay cut for six months. Four other staff will lose 10% of their salary for either six or three months.

Naoyuki Akikusa, chairman, will forgo half of his salary for six months at his own request, Fujitsu says.

The computer glitch was traced back to the incorrect patching of a file in mid-October during an upgrade to the trading system. A bug was found in an existing program, but Fujitsu provided incorrect instructions as to how to apply a patch, according to the Exchange.

The bug didn't reveal itself until the morning of November 1 when the stock and convertible bond trading system crashed while it was being started. The problem hadn't appeared earlier because it was related to a monthly data compression run that occurred on October 31 after trading had finished, the exchange says.

The punishments dished out by Fujitsu closely mirror those imposed on senior executives of the stock exchange. The exchange announced on November 11 that its president, Takuo Tsurushima, will see his pay cut in half for six months and two other executives will lose 30% of their pay for six months, it says. Five other staff were also censured.

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