Sompo adds C-suite pay cuts in ongoing response to auto claims fraud

Japanese insurance group Sompo ousted another leader of its home country P&C unit and slashed pay for its global leaders in yet another round of response to a case of systemic claims fraud. 

Pay cuts of 20 to 50% across periods ranging from 3 to 6 months hit five C-suite officials for the group holding plus three more executives at the Japan unit. Others have volunteered pay surrender. 

At the group holding, CEO Kengo Sakurada, already set to depart at end-March, will see a 50% cut in his remuneration from a six month period to top the announced pay cuts.

Group COO Mikio Okumuria, already assigned to step in for the departing Sakurada, will lose 30% over a six month period. 

Three other group C-suite personnel - CFO Masahiro Hamada, CHRO Shinichi Hara and CRO Yoshihiro Uotani - will take 20% cuts for three-month periods. Outside directors of the group holding and outside corporate auditors of the Japanese unit followed suit. 

At the Japanese unit, the previously announced departure of CEO Giichi Shirakawa will be followed out by the resignation of his deputy Satoshi Iitoyo, Sompo added. 

The pay claw backs are the latest corporate response to reported allegations that it had turned a blind eye as automotive insurance distribution partner Bigmotor systematically padded claims, and even returned to the partnership after the fraud had  been publicised. Departures of Sakurada and Shirakawa had been previously announced.

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